If yours is the type of organization that must interact with its customers every single day, most of those interactions are likely to be digital. When you shut down the system, lose power due to inclement weather, or encounter a critical system bug, the gears stop turning and the business stops breathing. This could mean that customers who are trying to contact you are unable to do so.
If you’re familiar with the terms ‘word-of-mouth’ or ‘third-party verification’, you know these are fundamental marketing concepts that usually work with you to grow your business. When you experience downtime and cannot conduct business, both of these concepts suddenly shift directions and will result in a crippling blow to your credibility. Furthermore, if you hinge your entire growth strategy on organic growth and existing clients telling their friends, then it is imperative that you maintain positive control of that relationship. And in this day and age, it is nearly impossible to do so without an Internet connection. So yes, if your system goes down for whatever reason, you will forego sales and member interactions. But think about the secondary and tertiary effects on your word-of-mouth campaign. Would you vouch for an association or company if they are regularly ‘unavailable?’
Although the financial implications of putting your business on hold are obvious for some, it is important to note that while you are scrambling to fix a problem, the bills are still coming in. You are still “paying to light the place” even though most of your time, energy, and dollars are spent trying to fix an issue. The simple microeconomic implications of the situation can indeed be catastrophic and in most cases, businesses have a safety-net in place. Is your safety net prepared to catch your entire IT infrastructure? In sum, downtime occurrences hurt businesses in more ways than one. It is important to recognize that cloud providers each have their own definition, and history, of downtime and to thoroughly evaluate each prospective provider on these standards. For questions regarding cloud computing for associations, institutions, or businesses, please visit Cetrom.