Many companies are unprepared for business disruptions caused by power outages and unaware of the costs and impact that they can have on their business.

While the majority of power failures from storms and power companies last less than a few hours, some can last days, completely shutting down production at companies and critical infrastructures.

Furthermore, it is likely outages may become more frequent from storms and aged national grid infrastructures in Europe and the US. Also, as more and more grids are interconnected, a blackout in one region can trigger a domino effect that could result in supra-regional blackouts. Heightened risk from terrorism, cyber-attacks and solar flares also highlight how vulnerable the world’s energy grids are to failure. Research shows the financial impact of a small power outage can be catastrophic. Blackout events in the US show a 30-minute power outage can result in an average loss of $15,709 for medium and large industrial clients, and $94,000 for an eight-hour interruption.

Limited insurance coverage available

Customers should be aware there is a much greater burden on companies to evaluate their exposure to power blackouts as currently there is very little available coverage in the insurance market to offset the risk. Some policies cover business interruption but usually they are only triggered by physical damage, such as a fire, these may cover on average just 20 to 25 percent of the business interruption losses.”

Preventing data center power outage

Uninterruptible power supply (UPS) units can be essential to keep systems operating through lightning strikes, storms and other power disruptions. UPS arrays can meet the specifications of the communications and networking systems they support. As organizations grow, so does the mix of gear relying on UPS systems. Adequate UPS systems, as well as proper grounding of sensitive equipment, are crucial. Periodic audits can help determine if facilities will meet power demands and prevent problems. Your service provider should be provide the framework for periodic audits and help you conduct them. Customers should pay attention to all hardware that is approaching the end of manufacturer support to assure the best repair times possible.

Is it time for you to consider an upgrade to your environment? Let Cadan Technologies help you upgrade your systems and prevent your business from loss of productivity.