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What’s the Price of Good Fire Insurance?

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Here’s some questions for you: Did you buy fire insurance for your house or business last year? Did anything burn down? No?Are you angry about that? Didn’t think so. Here’s another question for you: Are you intending on buying fire insurance this year? Thought so. Obviously, those of us who have it within our means wouldn’t dream of rolling without fire insurance for home or business. OK – last question: Do you have insurance against the #1 killer or successful businesses and / or do you know what the #1 business killer is? Answer: Downtime – or to be more accurate – unplanned downtime.

So what is the cost of unplanned downtime? It depends on the kind of business you are in. If you are an online retailer, unplanned downtime is simply not an option – to be down could kill you in a matter of a few hours. For others it’s less. Gartner released a report a few years back that indicated the average $5M company (if there is such a thing as an average company) burns up about $2K per hour. A real-life example from a customer of ours with ~75 desktops worked out their losses to be $20K per hour. Ouch!

What if there was a way to prevent that or at least mitigate the risk? Would you pay an insurance premium that saved you that kind of dough by way of prevention? Most people would. Especially if you consider that the premium paid could more than pay for itself in preventing the huge losses that unplanned downtime represents. But I am getting a little ahead of myself here. One needs to have a clear picture of what “unplanned downtime” actually is. Most folks think unplanned downtime is a network wide crash or outage. And while that certainly qualifies for the definition, downtime comes in other forms as well. Things like a single server outage as opposed to multiple servers; one that takes out say the CRM or file and print or email. Network slowdowns are another fine example. Or a virus attack, or spam problems or… well, I think you get the picture. Basically, anything that causes a loss of production big or small can be defined as unplanned downtime.

Defending against unplanned downtime is not all that hard but there are some prerequisites – and here’s where we get into the whole “fire insurance” thing. First off, you need an IT support company that has built a mature manages services offering. One that sees 24 x 7 x 365 remote monitoring with an alerting system, emergency after-hours support, help desk and multiple field techs (sorry, the one-man show just ain’t enough anymore), and a system of remote access that allows server reboots even if they are powered down due to a power outage.

Does that cost money? Yup, but so does fire insurance and you still buy that whether you use it or not. Having a managed services provider like Syncronet on your team is like having an insurance policy against unplanned downtime and the risk of unplanned downtime is far greater than the risk of fire – hands down no contest.

So – are your insurance premiums up to date? Give us a shout to find out how Syncronet managed services has consistently made us one of Vancouver’s best outsourced IT support providers since 1992.