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Planning for High Availability in the Enterprise
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Costs of downtime for applications that do not directly generate revenue but support business operations such as inventory management systems, human resources, and marketing are a bit more difficult to calculate. For supporting applications, you need to understand the percentage of overall business operations that a particular applica tion affects. Using the same revenue figures, calculate the percentage of revenue an application affects and scale it into a cost-per-minute value. After you have the figures for the downtime cost, multiply them by a factor of 3. So the $950-per-minute cost of downtime becomes an estimated downtime cost of $2,850 per minute. Although this number might seem a bit arbitrary, the factor of 3 is used to attempt to encompass all the intangible costs of downtime. Customers who try to place an order and find that the system is unavailable might go to your competitors to order a similar product. It is possible that any customer who gives up because the order system is not available might be lost forever to these com petitors. Outages also can affect a company s reputation. Because a company s image is the most important asset for generating business, bad publicity because of an outage might cost the business several orders of magnitude more than bottom-line revenue. By factoring all the intangible aspects such as loss of image, bad publicity, potential loss of staff, loss of customers, and so on you can better evaluate the costs associated with not having systems available.
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Although it would be nice for a company to hand the IT department a blank check, it simply isn t possible. So the IT department gets a yearly budget to cover all opera tional expenses as well as funding for hardware, software, and new application devel opment. Although this comes as no surprise to anyone working in an IT environment, it is interesting to note that virtually everyone thinks these are unchangeable, immu table numbers that cannot be exceeded under any circumstances. Ask yourself this question: Do you know how a budget number to fund your depart ment is generated High availability does not occur in a vacuum. The purpose of designing highly avail able systems is to support business operations. Having a system offline affects busi ness operations and therefore revenue. Budgets for each department in your organization are based on business priorities. The salaries, along with other costs such as benefits, are calculated and become one
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Lesson 1: Assessing Database Availability Requirements
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line item within the budget. If your department is adding staff, there is another line item to cover additional staff to be added during the year. The next line item is to sup port already existing systems and includes such things as electrical costs and licenses. After these core items are calculated for all departments, the picture gets very fuzzy to most people within an organization. The manager of your department enters budget meetings with a list of proposed projects for the coming year. Each of these projects includes estimates for hardware, software, additional personnel, additional support costs, and a host of other factors that leads to a final cost for the entire project. Each department has a variety of projects to accomplish in the upcoming year. Management decides whether a project is funded or not by prioritizing each project with respect to the impact that it has on bottom-line revenue. A budget for a department is based on an educated guess. You read that correctly: Management makes an educated guess about which projects to fund for the upcom ing year. What that means to IT staff struggling to implement highly available solutions is that budget numbers are not fixed and immutable. High availability is directly visible to the bottom line of a company, and the cost of downtime can be calculated as well. You might have a solution for achieving better availability for which the implementation cost exceeds the budget. That doesn t mean it cannot be implemented. If you can make a strong enough business case for going forward with such a system, it is possi ble that upper management might decide to shift funds from one budget to another by reprioritizing projects.
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