System Redundancy ROI Model

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    Compare the financial impact of status-quo downtime versus investing in system redundancy.

    NOTEAbout This Model
    ## Compare the financial impact of status-quo downtime versus investing in system redundancy. This model estimates **Net Redundancy Benefit** based on uncertain inputs: Downtime Hourly Rate, Redundancy Cost Per Year, Downtime Hours Per Year, Redundancy Effectiveness. Run the simulation to see the distribution of possible outcomes.
    VARIABLEDowntime Hourly Rate
    triangular(1000, 5.1e+4, 1.0e+5)
    Impact varies based on business scale and critical path dependencies.
    downtime_hourly_rate
    VARIABLEDowntime Hours Per Year
    lognormal(3.1349, 0.4557)
    Typical hours of unplanned outages seen in the primary system annually.
    downtime_hours_per_year
    VARIABLERedundancy Effectiveness
    beta(14.5, 5.5)
    Percentage of downtime avoided through redundancy; usually high but not 100%.
    redundancy_effectiveness
    VARIABLERedundancy Cost Per Year
    triangular(5000, 2.8e+4, 5.0e+4)
    Annual amortized cost for secondary hardware, licenses, or cloud failover.
    redundancy_cost_per_year
    FORMULABaseline Downtime Cost
    downtime_hourly_rate * downtime_hours_per_year
    Current annual cost from system failures without redundancy.
    baseline_downtime_cost
    FORMULAProtected Downtime Hours
    downtime_hours_per_year * (1 - redundancy_effectiveness)
    Remaining downtime hours after applying redundancy improvements.
    protected_downtime_hours
    FORMULATotal Redundant Cost
    (protected_downtime_hours * downtime_hourly_rate) + redundancy_cost_per_year
    Total annual cost with redundancy: reduced downtime cost plus implementation cost.
    total_redundant_cost
    FORMULANet Redundancy Benefit
    baseline_downtime_cost - total_redundant_cost
    Net savings from implementing redundancy. Positive means redundancy is profitable.
    net_redundancy_benefit
    OUTPUTNet Redundancy Benefit
    net_redundancy_benefit
    Net financial benefit of adding system redundancy. Positive values mean the redundancy investment pays for itself through reduced downtime costs. Negative means the outage risk does not justify the spend.

    What is Carlo?

    Carlo is a visual tool for Monte Carlo simulation. Model uncertainty by dragging probability distributions, connecting them visually, and running thousands of scenarios instantly.

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