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Cost Associated with Software Virus / Bug
Does anyone know how the media comes up with what a virus/bug costs a company in both downtime and dollars? Is there a general cost per day that they will associate to different types of business?
I.E. the Goner virus cost companies 100 million dollars
Re: Cost Associated with Software Virus / Bug
You can do this in a lot of ways.
One is taking your percentage of transactions (hits, sales, whatever) and multiply that by the duration of the downtime. That gets you the percentage of lost transactions of whatever type. Then take that value and multiply it by the average daily revenue of the company (or, alternatively, the operating expenses of the company). That gets you the lost revenue.
You can also break this down much more granularly if you want to figure out how much you are losing per hour or per minute. You can then average that up and work out how much you would lose (or could lose) during the course of a full year. In those cases, you take your annual gross revenue, and your ratio of gross profit to sales (as a percentage), and then the operating costs of the business.
There are other measures here as well, such as loss of customer satisfaction/goodwill, the downtime of the employees (except for those fixing the problem), estimated costs due to deferred profit, etc.