Disaster recovery plans and solutions are a form of insurance. Companies hope that they’ll never need them, but pay the “premium” because not to do so is to put their business at risk.
With any insurance policy, the subscriber tries to calculate what a fair premium to pay is. The calculation is based on the likelihood of making a claim, the size of a claim, and the premium payments. As long as the sum of all premium payments is less than the expected value of the policy (likelihood x amount), then the insurance is worth its price.
You’re dealing with imperfect information, of course, because you can’t predict the future, and don’t know what claims you might make. The best you can do is look to case studies for guidance. And maybe learn new ways to estimate insurance’s value to you.
So here’s a case study about the value of DR:
If the company had been shut down for those three days, they would have lost $900,000 in revenue.