Can your Business Survive after a Disaster or I.T. Outage?

Can your Business Survive after a Disaster or I.T. Outage?

Did you know that 40% of all businesses do not reopen their doors after a disaster? And another 25% fail within one year following a disaster, according to FEMA. To survive, business leaders must prepare for emergencies and take steps that minimize the effects. In today’s world, the most effective way to mitigate the effects is to have a reliable Business Continuity/Disaster Recovery (BC/DR) plan in effect and to utilize a proven DRaaS provider. Below are a few more statistics that were eye opening to me the first time I came across them.


  • 57% of Small & Mid-sized businesses (SMBs) have no recovery plan in place for a network outage, data loss or other IT disasters
  • 47% of mid-sized businesses have no recovery plan in place for a network outage, data loss or other IT disasters
  • 60% of all disaster events are caused by human error, and that is a conservative estimate, many estimate it is closer to 70%
  • The average downtime for a disaster event is 107 minutes, on it own.
  • The average amount of revenue lost per minute of downtime is $7,900.00
  • And because I did not require math for this Blog, that equates to $845,300.00


With those numbers, you can see why businesses often do not recover from a disaster. BC/DR is not an insurance plan, it is about making sure your organization can maintain operation in the event of a disaster, With the right BC/DR plan, you can drastically reduce the risk of your business being on the wrong side of the numbers.

What are some important points to consider when crafting your BC/DR plan? One of the first things to pinpoint is what applications are most crucial for your business to operate effectively? Not all of your Apps are equal, so you need to prioritize based on the needs of your organization. Not surprisingly, most businesses identified their email and eCommerce as most critical, followed by their ERP and CRM apps.  The good news here is that most companies today already have these Apps in the Cloud; however they still have the need to access them. The key to accessing these applications is the Internet, and/or the ability to run your business temporarily on mobile apps, via cell phones. The next group, as far as importance to the organisation is your phones and security/compliance, followed by File Servers and Development Stack. Once you identify the importance of each, specific to your firm, we have a fantastic and realistic starting point to put a comprehensive BC/DR plan together.

There are a couple acronyms synonymous to BC/DR that we need to address – RPO and RTO. RPO (Recovery Point Objective) refers to the amount of data at risk. It’s determined by the amount of time between data protection events and reflects the amount of data that potentially could be lost during a disaster recovery. RTO (Recovery Time Objective) is related to downtime. The metric refers to the amount of time it takes to recover from a data loss event and how long it takes to return to service.

The most critical Apps are often going to require a DRaaS (Disaster Recovery as a Service) solution with warm (standby) recovery hardware. This can be very expensive to achieve and therefore, having a realistic plan in place allows us to craft a customized solution for your organization. Many SMBs have felt a sense of comfort over the years because they have a backup strategy in place, either on-site or cloud based, but the numbers do not lie. What is your threshold for pain? Remember the average amount of revenue lost for the SMB market per minute is $7,900.00!

If your business or organization does not have a solid BC/DR plan in place, contact us today. KloudTek Consulting has an army of the best and brightest minds in the business spread across the globe, and these partners have been tackling this issue for decades.



20+ years in the Information Technology space at leading VARs across Michigan - specializing in Infrastructure and Communications. I am a focused professional who is proactive in servicing clients as a strategic and technical partner; leveraging skills in understanding complex business needs and delivering solutions that meet both short and long-term goals. Today, I specialize in Cloud technologies, which for me is a huge paradigm switch back to my roots, proving the idiom - Everything old is new again. I am incredibly passionate about the integration of technology in both our professional and personal lives.

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