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Cloud provider outages: a summary of the frequency, duration, and financial impact

Written By Raf Tomaszewski
August 12, 2024

Over the past five years, cloud provider outages have become more frequent and severe.

We’ve seen an increase in major incidents affecting the global economy, airports and banking systems – even the ability of news channels to air live TV. Is resilience still a priority for global businesses and critical infrastructure? Why are system failures becoming more global and causing more devastation than ever before? Let’s dive in.

The duration of cloud provider outages

Cloud provider outages graph
The first chart, which tracks the duration of these outages, shows a clear upward trend. This means that outages are not only occurring more often, but they are also lasting longer. This increasing frequency and duration indicate a growing instability in cloud services, which can severely disrupt business operations and service availability.

The financial impact of cloud provider outages

The second chart focuses on the financial impact of cloud provider outages. Here, the data shows a significant rise in the costs associated with each incident. The trend line illustrates that the financial consequences of outages are escalating, with some incidents costing hundreds of millions of dollars.The rising costs underscore the critical need for improved reliability and robustness in cloud infrastructure. Businesses are facing increasing financial risks due to these outages, highlighting the importance of investment in more resilient systems and contingency planning.
Cloud provider outages graph

The trends from both charts suggest that the cloud industry is grappling with growing challenges in maintaining service stability and managing the financial fallout from cloud provider outages. Stakeholders – including cloud service providers and their clients – must prioritise strategies to mitigate these risks. This might involve enhancing system redundancies, adopting better monitoring tools, and investing in rapid response capabilities to handle outages more effectively.

Broader implications and strategic reconsiderations

We have moved towards cloud computing for obvious reasons; progress, efficiency, and financial benefits. However, relying solely on cloud providers has proven to be a risky strategy, especially for critical infrastructure. This “all eggs in one basket” approach, driven primarily by financial incentives, is increasingly irresponsible. The current strategy shows significant vulnerabilities, especially for sectors where reliability and security are paramount. It is essential to diversify and not depend entirely on a single point of failure.

The widely accepted status quo of offloading responsibility to cloud providers is shortsighted and demonstrably ineffective. The trends indicate that this approach is unlikely to improve, given the complexities of global operations, datacentre challenges, and the increasing threats from cybercrime, cybersecurity issues, and advanced persistent threats (APTs). It is clear that the responsibility extends beyond merely satisfying stakeholders and generating profits. There is a greater duty to ensure security, stability, and resilience. This requires a more holistic approach to infrastructure management, incorporating diversified strategies and robust security measures to safeguard critical operations against the evolving landscape of threats.

Conclusion: the need for expertise and realistic strategies

The importance of real expertise, knowledge, and internal talent cannot be overstated. Marketing teams can make bold claims, but the data speaks for itself. The promises made were not outlandish, and we eagerly adopted them to increase value, revenue, and cut costs. This approach simplified everything, but at what cost?

It’s time to wake up and adjust our approach. We need to ground our strategies in reality and take responsibility for our decisions. The current model is not sustainable; even with 364 days of uptime, one significant global outage can negate all the benefits because we failed to prepare for the inevitable.

We must critically assess whether our “happy go lucky” approach is viable in the long term. Mitigation strategies need to be implemented, and while it’s not within this summary’s scope to recommend specific actions, it’s clear that change is necessary. The reality will catch up with us sooner or later, so it is imperative to prepare ourselves for the inevitable consequences of our reliance on cloud providers. Developing internal expertise, adopting robust mitigation strategies, and diversifying our approach will be crucial in navigating the complex and challenging landscape of modern cloud infrastructure and cybersecurity.

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This article is written by

Raf Tomaszewski

SOC Analyst

Raf is a SOC Analyst who leverages his diverse background to challenge industry norms with a practical and down-to-earth approach. He emphasises clear communication and actionable intelligence to empower everyone in an organisation. First meal after being stuck on a desert island: blue cheese gnocchi.