System Redundancy ROI Model
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Determine if the cost of implementing system redundancy is justified by the potential savings in avoided downtime costs.
NOTEAbout This Model
## Determine if the cost of implementing system redundancy is justified by the potential savings in avoided downtime costs. This model explores how **Net Redundancy Benefit** could play out, depending on Downtime Cost Per Hour, Redundancy Cost Annual, Expected Downtime Hours Per Year. Fixed values: System Lifetime Years. Hit **Run** to see the range of possibilities.
VARIABLEDowntime Cost Per Hour
triangular(1000, 5.1e+4, 1.0e+5)
Includes lost revenue, labor idle time, and potential SLA penalties. Highly variable by industry.
downtime_cost_per_hour
VARIABLEExpected Downtime Hours Per Year
poisson(26)
Historical or estimated hours the system is unavailable without redundancy.
expected_downtime_hours_per_year
CONSTANTSystem Lifetime Years
5
The planned operational life of the production system.
system_lifetime_years
VARIABLERedundancy Cost Annual
triangular(5.0e+4, 2.8e+5, 5.0e+5)
Annualized cost of backup hardware, software licenses, and maintenance.
redundancy_cost_annual
FORMULATotal Downtime Cost No Redundancy
downtime_cost_per_hour * expected_downtime_hours_per_year * system_lifetime_years
Total cost of downtime without redundancy over the system lifetime.
total_downtime_cost_no_redundancy
FORMULATotal Redundancy Cost Investment
redundancy_cost_annual * system_lifetime_years
Total cost of implementing redundancy over the system lifetime.
total_redundancy_cost_investment
FORMULANet Redundancy Benefit
total_downtime_cost_no_redundancy - total_redundancy_cost_investment
The net financial benefit (or loss) of implementing redundancy. Positive means redundancy saves money.
net_redundancy_benefit
OUTPUTNet Redundancy Benefit
net_redundancy_benefit
Track the net redundancy benefit output
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.