THE IMPACT OF NETWORK AND OR SERVER DOWNTIME

A failure of a critical Microsoft Windows application can lead to two types of losses:

• Loss of the application service – the impact of downtime varies with the
application and the business. For example, for some businesses, email can
be an absolutely business-critical service that costs thousands of dollars a
minute when unavailable.

• Loss of data – the potential loss of data due to an outage can have
significant legal and financial impact, again depending on the specific type of
application.

In determining the impact of downtime, you must understand the cost to your
business in downtime per minute or hour. In some cases, you can determine a
quantifiable cost (orders not taken). Other, less direct costs may include loss of
reputation and customer churn.

The loss of production data can also be very costly, for a variety of reasons. In the
manufacturing environment, the loss of data could affect compliance with regulations,
leading to wasted product, fines, and potentially hazardous situations. For example, if
a pharmaceutical company that is manufacturing drugs does not show all of the
records of its collected data from the manufacturing process, the FDA could force the
company to throw away its entire batch of drugs. Because it is critical to know the
value for every variable when manufacturing drugs, the company could face fines for
not complying with FDA regulations.

Publicly-traded companies may need to ensure the integrity of financial data, while
financial institutions must adhere to SEC regulations for maintaining and protecting
data. For monitoring and control software, data loss and downtime interrupts your
ability to react to events, alarms, or changes that require immediate corrective action.

The bottom line is downtime is very expensive and preventing downtime is the most important factor in any business operation.

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