Downtime, Outages and Failures - Understanding Their True Costs

Telco outages happen literally hundreds of times each month in Australia.


At one stage or another, your business will be unlucky enough to find itself in the midst of an unplanned outage.

 How did this outage happen, what caused it? Good questions, however, while you are thinking those questions, the real question is: How is it affecting your bottom line, and when will it be fixed?
Do you KNOW your service level agreements (SLA) for your services?

In reality, the outage is caused by some unknown factor and completely outside your control, so how does that affect the SLA clause in your contract?

 In fact, there are many causes of telco outages ranging from faulty equipment in data centers, telecom exchanges or simply environmental issues such as floods or cable cuts.

 Cost of Downtime: Calculating it Yourself

 How much do you lose from unexpected downtime of your telco services?
The simplest way to calculate potential revenue losses during an outage is with the equation:
LOST REVENUE
=
(GR/TH) x I x H
GR
=
gross yearly revenue
TH
=
total yearly business hours
I
=
percentage impact
H
=
number of hours of outage


Service costs are rarely zero.

Comments

Post a Comment

Popular posts from this blog

What is a business inbound number?

What is a business inbound number? An inbound number is a virtual business number that is used exclusively to receive and manage your incoming calls. Calls made to your inbound number can be redirected to your preferred answerpoint, such as your mobile, office phone or even a professional answering service. The most common inbound numbers are 1300 numbers, 1800 numbers and 13 numbers. Smartnumbers or Phone Words are also inbound numbers that gives you flexibility and control over your incoming business calls. Why choose an inbound number Inbound numbers such as 1300 or 1800 numbers can serve as a great business tool. Not only do they make your business look more professional to prospective customers, they offer far more flexibility and portability over a standard business phone number because they are not tied to a fixed landline or location. What is the difference? 1300 NUMBER 1300 numbers are the most popular form of national business phone number, and for good
Read more

Do Sharks Eat The Internet?

Image
How much of your business Internet traffic goes offshore? How does it get to and from Australia? Here is some Information about the Internet’s Undersea Cables. Australia’s submarine communications cables carry the bulk of our international voice and data traffic and are a vital component of our national infrastructure, linking Australia with other countries. Submarine cables are vulnerable to damage and breakage, which can cause serious consequences for the flow of information to and from Australia. Cable damage can cause data loss, significant delays, and severe financial loss to businesses, cable owners and individuals who rely on communication links with other countries. (Map updated 1st February 2019) Currently, 99% of the data traffic that is crossing oceans is carried by undersea cables. The reliability of submarine cables is high, especially when multiple paths are available in the event of a cable break. As a result of these cables' cost a
Read more

30 years old and no longer wanted.

Image
I love telecommunication acronyms, one I’m especially proud to be able to quote instantly is “ISDN”. “Integrated Services Digital Network”, which was born in 1986 and Telecom Australia was one of the first telecommunications carriers in the world to introduce ISDN starting in 1988. Now just over 30 years later, Telstra will commence the disconnection of copper ISDN services from the end of September this year, as the NBN rollout continues to bring business-grade networking solutions online. Telstra issued a “stop sell” to all retail and wholesale customers for ISDN2, ISDN2 Enhanced, ISDN10/20/30, DDS Fastway, Megalink and Frame Relay products on 30 June 2018, encouraging users to find alternative replacement solutions ahead of a “final exit date”. That final exit date on copper ISDN services is approaching, according to a Telstra spokesperson. “As part of the NBN rollout, copper  ISDN services are being disconnected from September 30th, 2019. Remaining custo
Read more