RTO, RPO, and the Cost of Downtime
RTO: “Recovery Time Objective”:
This is the duration of time and service level needed in order for operations to be restored following a disaster (or other disruption) in order to avoid a dire break in business continuity.
RPO: “Recovery Point Objective”:
This is the maximum tolerable amount of time in which IT data might be lost due to an interruption or disastrous incident.
Below is an easy 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: