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­Cost of Business Downtime

Business downtime cost can be measured using the following formula:

­Productivity impact + revenue impact = downtime estimate

Productivity impact can be calculated on the basis of the average employee salary multiplied by the number of business hours the users would be impacted if denied access to systems and data.

Revenue impact can be calculated on the basis of the average monthly gross revenue for the critical application multiplied by the number of business hours that the application is affected. These are then added together to achieve the estimated cost of downtime.


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