Dec
22
2009

Reliability: The Holiday Season and Ecommerce trap – when downtime equals lost sales, and uptime equals lost revenues

Holiday shopping season is crunch time for many businesses dependent on the revenues generated between Thanksgiving and New Year’s Day. Increasingly, a large percentage of those sales are via online channels. IT infrastructure and availability is under the microscope, and lost sales from poor performing or offline servers compound an already high average Cost of Downtime (CoD). The question is: how can you accurately calculate those losses in order to responsibly protect your business. Understanding true downtime losses are the key to qualifying your availability requirements.

The tangible, obvious numbers are easy. Take the average daily sales total, multiply it by the percentage increase for seasonal holiday sales, multiply that number by hours or days of downtime, and you have a nice, easily understood price tag. It’s not the most accurate price tag however, and therein lays the danger. Intangible costs can ripple and escalate in unexpected and very expensive ways.

Let’s consider an imaginary SMB that sells a popular gadget. They have a shopping cart section of the website that moves 1,000 gadgets a day at a price of $10.00 per gadget.

1,000 gadgets X $10.00 = $10,000 per day in gross online revenue
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Sep
8
2009

Beyond the Hype – Data Center Ratings & Your IT

Data center ratings have become an increasingly popular marketing point for dedicated web and application hosting providers, but what do those ratings really mean, and how do they impact the success of your business? By understanding how data centers are evaluated and scored, you can make a more informed decision about your specific business needs and maximize the value of your IT costs.

Depending on your point of view, you may focus on certain data center features when reviewing managed hosting and colocation providers. Some businesses are concerned with connectivity, others with environmental features, or physical security, or routing protocols; it’s a long and diverse list. At the heart of every individual concern is an overriding one and it’s the same for every business- uptime. As anyone who has spent time reading and evaluating service level guarantees (SLAs) knows, there are a lot of ways uptime can be defined.

Data center ratings ideally provide a standardized, industry accepted means to fairly and objectively review data centers, so customers can cut through the marketing hype and truly understand the differences when making important business decisions. In practice however, this hasn’t fully been the case.
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