Amazon Web Services on Wednesday suffered its third outage in as many weeks, hampering a variety of online services and websites, including companies such as Slack, Asana and Epic Games.
On a status page for AWS, Amazon (ticker: AMZN) said the incident began at 4:35 a.m. Pacific time, with some instances of its EC2 online computing platform experiencing failures and connectivity issues in its East-1 Region. The company said the issue reflected a loss of power in one data center, which appears tied to a site in northern Virginia.
As of 6:51 a.m., Amazon said, power has been restored, but some connectivity issues remain.
Slack on its own status page says the service (a Salesforce.com (CRM) unit) is having some problems with file uploads. Asana (ASAN) reports that an earlier outage has been resolved. Epic Games earlier reported some issues affecting various services on its platform.
Downdetector.com, a website that tracks outages based on social media complaints, also shows recent issues with Fidelity, Venmo, Coinbase (COIN) and some other sites.
Seeing multiple outages in a short period of time is certainly alarming, but there’s little chance it will result in any material change in the world’s widespread reliance of web-based services on AWS and other cloud service providers including Microsoft Azure, Google Cloud and Oracle Cloud.
The truth is that the modern Web simply wouldn’t function without the kind of centralized computing, storage and connectivity they provide, many startups wouldn’t exist without AWS and their kin and there’s literally zero probability that the shift to the cloud and away from in-house data centers will reverse.
While generally offering high availability, these services at the end of the day are complex collections of servers, storage and networks, all reliant on the global communications and power networks. And while they are generally reliable, they are subject to computer glitches, human error and natural disasters. So sometimes they go down.
The flurry of outages does suggest that some companies might benefit from taking a multi-cloud approach, diversifying reliance from any single provider – but that approach creates both cost and complexity that many online services may not want to bear.
Many companies actually do use more than one provider, but often that involves running one service on one cloud, and a second service on another, rather than using them in concert to accomplish a single task. Among other things, cloud computing saves companies money by cutting IT costs – duplication of services on multiple clouds runs counter to that basic goal.
Meanwhile, AWS is now producing $60 billion a year in revenue, growing rapidly and as a stand-alone business is arguably worth as much as $1 trillion, making it one of the most valuable computing companies in the world. This outage doesn’t change that.
Amazon shares on Wednesday are up a fraction at $3,409.75. The S&P 500 iis up 0.7%, and the Dow Jones Industrial Average is up 0.5%.
Write to Eric J. Savitz at eric.savitz@barrons.com
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December 22, 2021 at 11:52PM
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