Your business’s decision to invest in a competent HA/BC System is probably largely driven by objectively verifiable ROI. In addition to lost revenues during an outage, other key variables affecting ROI are:
- degree to which revenues are actually network dependent,
- length of outages during productive hours,
- your business’s profit margin, and
- your business’s operating hours.
The following table illustrates the effect Déjà Vu has on the ROI of a hypothetical $250 million company when compared to a standard HA/BC System:
To Calculate your own yearly ROI Click Here 
Hypothetical Company |
Déjà Vu HA/BC |
|
Standard HA/BC |
|
Client's Annual Gross Revenues |
$ 250,000,000 |
2,080 hrs. |
$ 250,000,000 |
2,080 hrs. |
Portion Network Dependent |
75% |
|
75% |
|
Network Dependent Revenue |
$ 187,500,000 |
|
$ 187,500,000 |
|
Annual Network Outage |
0.50% |
10.4 hrs. |
0.50% |
10.4 hrs. |
Gross Revenue Lost to Outages |
$ 937,500 |
|
$ 937,500 |
|
Gross Profit Margin |
40% |
|
40% |
|
Pre-HA Loss to Outages |
$ 375,000 |
$ 36,058 |
$ 375,000 |
$ 36,058 |
Post HA Loss to Outages |
$ 18,029 |
0.5 hrs. |
$ 18,029 |
0.5 hrs. |
Gross Savings for Year |
$ 356,971 |
|
$ 356,971 |
|
HA System Cost per Year |
$ 152,835 |
|
$ 500,000 * |
|
Net Increase in Gross Profit |
$ 204,136 |
|
$ (143,029) |
|
Annual ROI |
133.6% |
|
-28.6% |
|
|
* Comparative cost may be reduced to the extent a “do it yourself” IT staff may save the profit portion of an outsourced system – provided they are highly experienced in the design, installation and management of true HA/BC systems.
Many companies suffer much more than the 10.4 hours of network outages per year assumed in the above table.
Of course, the longer the outages, the costlier they are, and the more Déjà Vu makes objective economic sense. For example,
- Of 40 large companies studied, the average company in the financial sector suffered a 16.6 hour outage between data back ups from which it took them 22.4 hours to recover per incident. (Source: IDC Study, 2003)
- Of 40 large companies studied, the average company in the manufacturing sector suffered 40+ hours outage between data back ups and took over 40 hrs. to recover per incident. (Source: IDC study, 2004)
- Of 40 large companies studied, the average annual availability of applications was 97.2% during 2003 and 97.8% predicted for 2004.
(Source: Ensuring Information Availability: Aligning Customer Needs with an Optimal Investment Strategy, IDC 2004)
- 270 large companies surveyed lost 2-16% of their revenues to network downtime. (Source: The Costs of Enterprise Downtime, North American Vertical Markets 2005 Infonetics Research, Inc. 2005)
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