Incident Impact Full Report

As you know, you’re already spending $2xx0 a year to incidents in engineering salaries, but there’s more operating costs for incidents.

Companies your size typically generate around $1xx0 an hour in revenue. With 20xx hours of incidents per year, that’s $2xx00 in lost revenue.

Customers may also churn due to unreliability. A company of your size, with around 10xx0 customers, could lose 0.0xx2% of their customers from each hour of incidents. If each customer generates $1xx per month in revenue, these 41x lost customers cost you $74xx0 per year.

Of course, you’ll also acquire new customers, but incidents can impact that as well. If your company typically acquires new customers at a rate of xx per hour, you could lose out on 10x new customers who try to join during incidents. Those customers would have generated $1xx00 in one year.

In total, the yearly lost revenue of incidents for you could reach as high as $x0. With Blameless, you can get $21xx16 in additional revenue.

Although hard to fully estimate, the damage incidents cause to your brand can be the most significant aspect of incident costs. For larger publicly-traded companies, major incidents can devastate your stock price, leading to a downward spiral of selloffs and skepticism. For smaller companies, incidents can interfere with acquiring funding or taking on critical new customers.

As industries become increasingly competitive, the value of your brand’s reputation for reliability becomes more important. If every competing service has roughly the same feature set, customers will flock to the solution that allows access to those features most consistently. For a company of your size, we can assume that roughly 30%% of your prospective business comes from your brand’s reputation.

With Blameless reducing your incident hours from 208 to 62.4, we anticipate that you’ll acquire more customers, funding, and stock value as your brand’s reputation improves. The long term impact of this is incalculable as it compounds upon itself with every customer acquired.

In the first year of using Blameless, we can estimate this value could be at least $62400.

Incidents are one of the most stressful aspects of an engineer’s job. They’re tense, time-sensitive situations with tons of money on the line. Plus, they can pop up at any instant. On top of that, they pull engineers away from what’s commonly cited as the most enjoyable aspects of the job: working on new high-impact projects.

It’s no wonder that stress from incidents is a leading cause of burnout among engineers. Since you already spend $60000000 on your total engineering salary every year, investing in a relatively small amount like Blameless to keep them happy is essential.

But what is the cost of unhappy engineers? Commonly cited turnover rates for engineers around 20% year over year. If 30% of your turnover is due to incident-related burnout, that’s 30 engineers you have to rehire and retrain each year. With Blameless, we can get this number down to 9.

If it takes you approximately 6 weeks to get a new hire up to speed and contributing, you’re currently spending $415384 on new engineers’ salaries before they generate any value. After implementing Blameless, you could save up to $290769 on this cost.

It's important to consider the work that incident prevent your team from accomplishing. If you’re spending 2x8 engineering hours per year on incidents, what else could you have done with that time? What is the value of the features or enhancements your team could have built? How about the competitive advantage you could have realized?

Many companies at your size average x major releases each year. With Blameless, you can reduce your incident hours down to 6x.4. The hours you gain to work on features can increase your development velocity by 2xx0%.

There are many valuable aspects of increasing your development velocity. There are customers you can acquire off the advantage of having the new feature sooner than your competitors. It also gives you that much more time to refine and optimize these features, making them more impactful and reliable. The more you can gain time on your release schedule, the fewer incidents you’ll have to deal with later.

To summarize these benefits, let’s consider how much of your new revenue comes from feature work. For a company of your size, industry standards suggest that your feature set accounts for about 4xx5% of new revenue. The value of increasing development velocity on this new revenue compounds, but for the first year it could be worth as high as $936xx00.asdfasdfasdf1xx.81xx.8 1xx8x83x%%$19xx00