RTO, RPO, and the Cost of Downtime
RTO: “Recovery Time Objective”:
Duration of time and a service level within which a business process needs to be restored following a disaster (or other disruption) in order to avoid unacceptable consequences associated with a break in business continuity.
RPO: “Recovery Point Objective”:
Maximum tolerable period in which data might be lost from an IT service due to a big incident.
Below is a simple formula with the cost of data loss or critical failure to a business network. If the annual revenue is around $1 million per year and it is a 24×7, 7 days-a-week, 52 weeks-a-year business model, dividing $1 million dollars by the 8760 hours will give you the hourly revenue loss:
If your annual revenue is around $1 million per year and the business is an 8:00AM to 5:00PM, 5 days-a-week, 52 weeks-a-year business model, dividing $1 million dollars by the 2080 hours will provide the hourly revenues loss: