Search
00
GBAF Logo
trophy
Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

Subscribe to our newsletter

Get the latest news and updates from our team.

Global Banking and Finance Review

Global Banking & Finance Review

Company

    GBAF Logo
    • About Us
    • Profile
    • Privacy & Cookie Policy
    • Terms of Use
    • Contact Us
    • Advertising
    • Submit Post
    • Latest News
    • Research Reports
    • Press Release
    • Awards▾
      • About the Awards
      • Awards TimeTable
      • Submit Nominations
      • Testimonials
      • Media Room
      • Award Winners
      • FAQ
    • Magazines▾
      • Global Banking & Finance Review Magazine Issue 79
      • Global Banking & Finance Review Magazine Issue 78
      • Global Banking & Finance Review Magazine Issue 77
      • Global Banking & Finance Review Magazine Issue 76
      • Global Banking & Finance Review Magazine Issue 75
      • Global Banking & Finance Review Magazine Issue 73
      • Global Banking & Finance Review Magazine Issue 71
      • Global Banking & Finance Review Magazine Issue 70
      • Global Banking & Finance Review Magazine Issue 69
      • Global Banking & Finance Review Magazine Issue 66
    Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
    Copyright © 2010-2025 GBAF Publications Ltd - All Rights Reserved.

    Editorial & Advertiser disclosure

    Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

    Home > Technology > Analysis: Outage shows how Amazon’s complex cloud makes backup plans difficult
    Technology

    Analysis: Outage shows how Amazon’s complex cloud makes backup plans difficult

    Analysis: Outage shows how Amazon’s complex cloud makes backup plans difficult

    Published by Jessica Weisman-Pitts

    Posted on December 9, 2021

    Featured image for article about Technology

    By Stephen Nellis

    (Reuters) – Major companies using Amazon.com’s data services got a painful lesson this week about how the complexity and market dominance of the company’s cloud unit make it difficult to back up their data with other providers, analysts and experts told Reuters.

    Amazon said that an “an impairment of several network devices” in its Amazon Web Services (AWS) Virginia data center region caused the prolonged outage on Tuesday. The outage temporarily interrupted streaming platforms Netflix Inc and Disney+, trading app Robinhood Markets Inc and even Amazon’s own e-commerce site, which makes heavy use of AWS.

    An Amazon spokesperson told Reuters on Wednesday that the issues had been resolved.

    The huge trail of damage from a network problem at a single region that AWS calls “US-EAST-1” underscored how difficult it is for companies to spread their cloud computing around.

    With 24.1% of the overall market, according to research firm IDC, Amazon is the world’s biggest cloud computing firm. Rivals like Microsoft Corp, Alphabet’s Google Inc and Oracle Corp are trying to lure AWS customers to use parts of their clouds, often as a backup.

    But crafting a complex online service that can be easily shifted from one provider to another in case of emergency is far from simple, said Naveen Chhabra, a senior analyst with research firm Forrester. Rather than being a singular “cloud,” AWS is actually composed of hundreds of different services, from basic building bocks like computing power and storage to advanced services like high-speed databasees and artificial intelligence training.

    Any given website, Chhabra said, might use several dozen of those individual services, each of which must work for the site to function. It is difficult to make a backup on another cloud provider because some services are proprietary to AWS and some work very differently at another provider.

    “It’s like saying, ‘Can I put an SUV body on a sedan chassis?’ Maybe, if everything is all the same and lines up. But there is no guarantee,” Chhabra said.

    Another issue that makes it hard for businesses to diversify is that AWS makes it relatively cheap to send data into its cloud, but then charges higher prices for “egress fees” to get data out of its cloud to take to a rival.

    “That amplifies issues like this (outage) when they happen,” said Matthew Prince, chief executive of internet security firm Cloudflare Inc “A more resilient cloud is one where egress fees are eliminated and customers can be multi-cloud. I think that would actually increase the faith customers have in the cloud.”

    DEPENDENCIES IN ONE REGION

    AWS itself has critical “dependencies” within its own services where they are linked together in ways that can cause one to fail when another fails, said Angelique Medina, head of product market at Cisco Systems Inc’s ThousandEyes. That is because AWS’s complex services are often built on top of its own more basic services. One problem that crops up with a basic function like networking can cascade through services that depend on it.

    Early on in the incident on Tuesday, AWS said the outage was “affecting some of our monitoring and incident response tooling, which is delaying our ability to provide updates.”

    Medina said AWS also seems to be have critical services clustered in its US-EAST-1 region, where another outage last year also had a widely felt impact.

    “That’s where a lot of their critical dependencies have been located historically,” Medina said. “Over time, they’ve diversified a bit.”

    Chhabra, the Forrester analyst, said Amazon has done a lot of “heavy lifting” to make its own services resilient. But what Amazon does not do for its customers is build applications in a way that can withstand an outage by tapping multiple locations or providers.

    Doing so can often involve extra work that might not always be worth it when cloud outages remain relatively rare.

    “It’s this tradeoff you always have between something that is decentralized, something that’s secure and something that’s useable,” said Charly Fei, product lead for Inter Blockchain Communication lead at The Interchain Foundation, which is focused on technologies for decentralizing computing. “It’s not something where you’ll ever get a perfect solution that gets all three.”

    (This story fixes typographical error in paragraph 16)

    (Reporting by Stephen Nellis in San Francisco; Editing by David Gregorio)

    By Stephen Nellis

    (Reuters) – Major companies using Amazon.com’s data services got a painful lesson this week about how the complexity and market dominance of the company’s cloud unit make it difficult to back up their data with other providers, analysts and experts told Reuters.

    Amazon said that an “an impairment of several network devices” in its Amazon Web Services (AWS) Virginia data center region caused the prolonged outage on Tuesday. The outage temporarily interrupted streaming platforms Netflix Inc and Disney+, trading app Robinhood Markets Inc and even Amazon’s own e-commerce site, which makes heavy use of AWS.

    An Amazon spokesperson told Reuters on Wednesday that the issues had been resolved.

    The huge trail of damage from a network problem at a single region that AWS calls “US-EAST-1” underscored how difficult it is for companies to spread their cloud computing around.

    With 24.1% of the overall market, according to research firm IDC, Amazon is the world’s biggest cloud computing firm. Rivals like Microsoft Corp, Alphabet’s Google Inc and Oracle Corp are trying to lure AWS customers to use parts of their clouds, often as a backup.

    But crafting a complex online service that can be easily shifted from one provider to another in case of emergency is far from simple, said Naveen Chhabra, a senior analyst with research firm Forrester. Rather than being a singular “cloud,” AWS is actually composed of hundreds of different services, from basic building bocks like computing power and storage to advanced services like high-speed databasees and artificial intelligence training.

    Any given website, Chhabra said, might use several dozen of those individual services, each of which must work for the site to function. It is difficult to make a backup on another cloud provider because some services are proprietary to AWS and some work very differently at another provider.

    “It’s like saying, ‘Can I put an SUV body on a sedan chassis?’ Maybe, if everything is all the same and lines up. But there is no guarantee,” Chhabra said.

    Another issue that makes it hard for businesses to diversify is that AWS makes it relatively cheap to send data into its cloud, but then charges higher prices for “egress fees” to get data out of its cloud to take to a rival.

    “That amplifies issues like this (outage) when they happen,” said Matthew Prince, chief executive of internet security firm Cloudflare Inc “A more resilient cloud is one where egress fees are eliminated and customers can be multi-cloud. I think that would actually increase the faith customers have in the cloud.”

    DEPENDENCIES IN ONE REGION

    AWS itself has critical “dependencies” within its own services where they are linked together in ways that can cause one to fail when another fails, said Angelique Medina, head of product market at Cisco Systems Inc’s ThousandEyes. That is because AWS’s complex services are often built on top of its own more basic services. One problem that crops up with a basic function like networking can cascade through services that depend on it.

    Early on in the incident on Tuesday, AWS said the outage was “affecting some of our monitoring and incident response tooling, which is delaying our ability to provide updates.”

    Medina said AWS also seems to be have critical services clustered in its US-EAST-1 region, where another outage last year also had a widely felt impact.

    “That’s where a lot of their critical dependencies have been located historically,” Medina said. “Over time, they’ve diversified a bit.”

    Chhabra, the Forrester analyst, said Amazon has done a lot of “heavy lifting” to make its own services resilient. But what Amazon does not do for its customers is build applications in a way that can withstand an outage by tapping multiple locations or providers.

    Doing so can often involve extra work that might not always be worth it when cloud outages remain relatively rare.

    “It’s this tradeoff you always have between something that is decentralized, something that’s secure and something that’s useable,” said Charly Fei, product lead for Inter Blockchain Communication lead at The Interchain Foundation, which is focused on technologies for decentralizing computing. “It’s not something where you’ll ever get a perfect solution that gets all three.”

    (This story fixes typographical error in paragraph 16)

    (Reporting by Stephen Nellis in San Francisco; Editing by David Gregorio)

    Related Posts
    Treasury transformation must be built on accountability and trust
    Treasury transformation must be built on accountability and trust
    Financial services: a human-centric approach to managing risk
    Financial services: a human-centric approach to managing risk
    LakeFusion Secures Seed Funding to Advance AI-Native Master Data Management
    LakeFusion Secures Seed Funding to Advance AI-Native Master Data Management
    Clarity, Context, Confidence: Explainable AI and the New Era of Investor Trust
    Clarity, Context, Confidence: Explainable AI and the New Era of Investor Trust
    Data Intelligence Transforms the Future of Credit Risk Strategy
    Data Intelligence Transforms the Future of Credit Risk Strategy
    Architect of Integration Ushers in a New Era for AI in Regulated Industries
    Architect of Integration Ushers in a New Era for AI in Regulated Industries
    How One Technologist is Building Self-Healing AI Systems that Could Transform Financial Regulation
    How One Technologist is Building Self-Healing AI Systems that Could Transform Financial Regulation
    SBS is Doubling Down on SaaS to Power the Next Wave of Bank Modernization
    SBS is Doubling Down on SaaS to Power the Next Wave of Bank Modernization
    Trust Embedding: Integrating Governance into Next-Generation Data Platforms
    Trust Embedding: Integrating Governance into Next-Generation Data Platforms
    The Guardian of Connectivity: How Rohith Kumar Punithavel Is Redefining Trust in Private Networks
    The Guardian of Connectivity: How Rohith Kumar Punithavel Is Redefining Trust in Private Networks
    BNY Partners With HID and SwiftConnect to Provide Mobile Access to its Offices Around the Globe With Employee Badge in Apple Wallet
    BNY Partners With HID and SwiftConnect to Provide Mobile Access to its Offices Around the Globe With Employee Badge in Apple Wallet
    How Integral’s CTO Chidambaram Bhat is helping to solve  transfer pricing problems through cutting edge AI.
    How Integral’s CTO Chidambaram Bhat is helping to solve transfer pricing problems through cutting edge AI.

    Why waste money on news and opinions when you can access them for free?

    Take advantage of our newsletter subscription and stay informed on the go!

    Subscribe

    Previous Technology PostStrategies for Resolving the Cybersecurity Talent Gap
    Next Technology PostTechnographics Example: Everything You Need to Know

    More from Technology

    Explore more articles in the Technology category

    Why Physical Infrastructure Still Matters in a Digital Economy

    Why Physical Infrastructure Still Matters in a Digital Economy

    Why Compliance Has Become an Engineering Problem

    Why Compliance Has Become an Engineering Problem

    Can AI-Powered Security Prevent $4.2 Billion in Banking Fraud?

    Can AI-Powered Security Prevent $4.2 Billion in Banking Fraud?

    Reimagining Human-Technology Interaction: Sagar Kesarpu’s Mission to Humanize Automation

    Reimagining Human-Technology Interaction: Sagar Kesarpu’s Mission to Humanize Automation

    LeapXpert: How financial institutions can turn shadow messaging from a risk into an opportunity

    LeapXpert: How financial institutions can turn shadow messaging from a risk into an opportunity

    Intelligence in Motion: Building Predictive Systems for Global Operations

    Intelligence in Motion: Building Predictive Systems for Global Operations

    Predictive Analytics and Strategic Operations: Strengthening Supply Chain Resilience

    Predictive Analytics and Strategic Operations: Strengthening Supply Chain Resilience

    How Nclude.ai   turned broken portals into completed applications

    How Nclude.ai turned broken portals into completed applications

    The Silent Shift: Rethinking Services for a Digital World?

    The Silent Shift: Rethinking Services for a Digital World?

    Culture as Capital: How Woxa Corporation Is Redefining Fintech Sustainability

    Culture as Capital: How Woxa Corporation Is Redefining Fintech Sustainability

    Securing the Future: We're Fixing Cyber Resilience by Finally Making Compliance Cool

    Securing the Future: We're Fixing Cyber Resilience by Finally Making Compliance Cool

    Supply chain security risks now innumerable and unmanageable for majority of cybersecurity leaders, IO research reveals

    Supply chain security risks now innumerable and unmanageable for majority of cybersecurity leaders, IO research reveals

    View All Technology Posts