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.