The True Cost of IT Downtime: Why Prevention Matters

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17 March 2025

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For professional service firms in Atlanta, system downtime isn’t just an inconvenience—it’s a direct hit to your bottom line. While many firms try to minimize IT costs, the reality is that inadequate IT resources often lead to expensive downtime that far exceeds the cost of proper prevention.

Breaking Down the Real Numbers

Let’s calculate the true monthly cost of downtime for a typical 25-person professional service firm in Atlanta:

The Downtime Cost Formula

Monthly Downtime Cost = Number of Employees × Hourly Rate × Hours per Incident × Incidents per Month

Typical Scenario

  • Number of employees: 25
  • Average billable rate: $150/hour
  • Average downtime per incident: 2 hours
  • Average incidents per month: 4

Total Monthly Cost = 25 × $150 × 2 × 4 = $30,000

This means a typical 25-person firm loses $30,000 every month due to IT downtime.

Annual Impact

  • Monthly cost: $30,000
  • Annual cost: $360,000
  • Additional emergency IT fees: $24,000-36,000
  • Total annual impact: ~$400,000

Hidden Costs Beyond the Numbers

The formula above captures direct costs, but downtime also creates significant hidden expenses:

  • Client dissatisfaction and potential client loss
  • Reputation damage in a competitive market
  • Employee frustration and decreased morale
  • Missed deadlines and project delays
  • Data recovery expenses
  • Regulatory compliance risks

The Bottom Line

The numbers don’t lie. While a managed IT investment of $46,500 annually might seem significant, it’s just over 10% of what downtime typically costs a 25-person firm each year. For Atlanta’s professional service firms, the question isn’t whether you can afford proper IT support—it’s whether you can afford not to have it.

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Technology was becoming a barrier to our growth until onCloud stepped in. Now our staff can focus on empowering youth instead of wrestling with IT issues. Their solution helped us expand our
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