Cloud outages can be costly and disruptive for businesses. While many cloud companies have protocols in place to minimize the impact of outages, they are still bound to happen from time to time. When they do, business owners need to know their options for recovering any sustained losses. So, what can businesses do to recover lost revenue and data during a cloud outage? And is there anything they can do to prevent such losses in the first place? In this blog post, we’ll explore tips on how businesses can protect themselves from potential cloud outages and recover quickly if one occurs.
The Cost of a Cloud Outage
A cloud outage can have a significant financial impact on a business.
- The cost of downtime is $5,600 per minute for the average company, according to data analytics firm GlobalDots.
- Insurer Parametrix estimates that outage costs can reach up to $9,000 per minute.
- According to a 2018 Lloyd’s report, losses during a large outage will be concentrated among smaller businesses, which are not as well insured. They would likely assume 63% of the loss burden.
Several factors contribute to the high cost of a cloud outage. First, there’s the direct loss of revenue associated with any downtime. You’re not making any money if your website or app is down. And if customers can’t access your products or services, they may take their business elsewhere. Second, there’s the indirect cost of lost productivity. Your employees can’t do their jobs if they can’t access the cloud-based tools they need. This can lead to lost sales, missed opportunities, and even customer churn. Finally, there’s the cost of repairing any damage that was done during the outage. If data was lost or corrupted, you’ll need to spend time and money restoring it.
How to Prevent and Recover from Cloud Outages
There are several things businesses can do to recover from a cloud outage. First, you’ll need to identify the cause of the outage and take steps to prevent it from happening again. Second, you’ll need to assess the damage and determine what needs to be done to repair it. This may include restoring lost data or reconfiguring systems. Finally, you’ll need to implement a plan to prevent future outages. This may involve changes to your infrastructure, processes, or policies.
There are several things businesses can do to prevent cloud outages. First, you should choose a reputable and reliable cloud provider. Make sure they have robust protocols in place to prevent and minimize the impact of outages. Second, you should monitor your systems closely and be prepared to respond quickly if an outage does occur. This may involve having a backup plan in place or investing in redundancies. Finally, you should educate your employees on best practices for using cloud-based tools and ensure they follow them.
Insurance Coverage for Cloud Outages
Did you know that you can insure your company against losses sustained during a cloud outage? Many businesses are unaware that such coverage exists, but it can be a lifesaver for companies that rely heavily on cloud-based applications and services.
Thankfully, insurance policies available can help protect your business in the event of a cloud outage. These policies typically cover lost revenue, expenses incurred in restoring service, and other damages that may result from an interruption in service.
Even if your business can weather the storm and continue operations, you may still experience losses. The best way to protect your business from these outages is by having a reliable cloud service provider like RCN Networks. Our team can work with you to create a custom plan that meets your company’s needs and helps keep you online during any outage. Contact us today to speak with one of our representatives about all your cloud needs. 866-GO-RCN-NOW (866-467-2666)