Massive AWS Outage Disrupts Major Internet Services Worldwide | AI News
A major outage at Amazon Web Services (AWS) has once again shown how fragile the modern internet can be. On Monday around 6 p.m. AEDT, one of AWS’s data centres in Northern Virginia, U.S., suffered a malfunction that disrupted services across the world. Banks, accounting platforms like Xero, and social media apps such as Snapchat were hit hard.
AWS claims the root issue is now fixed, yet many users still face intermittent service problems. This event highlights how much of the world’s digital activity depends on a few massive cloud providers.
What Cloud Computing Really Means
Cloud computing allows companies to rent computing power, databases, and storage instead of owning physical servers. The concept gained popularity during the late 1990s tech boom when firms began offering software directly over the internet.
AWS was one of the first to let others rent its virtual servers for a fee, offering flexibility and a pay-as-you-go model similar to utilities. The idea took off quickly. Today, more than 94% of enterprises rely on some form of cloud service.
The Big Three Cloud Providers
The global cloud market is controlled by three major companies:
- Amazon Web Services (AWS) — around 30% market share
- Microsoft Azure — roughly 20%
- Google Cloud Platform (GCP) — about 13%
Each has faced major outages. In 2024, a third-party software fault crippled Microsoft Azure, while Google Cloud recently went offline after an internal configuration mistake. When these platforms stumble, entire sections of the internet follow.
Why Dependence Is Dangerous
Relying on a handful of large providers brings serious risks.
1. A single point of failure.
When one system fails, the impact spreads instantly. The AWS outage proved how a single technical glitch can halt banks, businesses, and social platforms within minutes.
2. Vendor lock-in.
Switching providers is often too expensive. Moving data between clouds involves high “data egress” fees, making customers feel trapped under one provider’s terms.
3. Geopolitical exposure.
Since most large cloud firms are based in the U.S., stored data is governed by U.S. law. This raises compliance concerns under international privacy rules, such as Australia’s Privacy Act. These companies can also control access or censor certain services, giving them vast power over global operations.
How to Reduce the Risk
Experts suggest two strategies:
- Multi-cloud adoption. Spread critical services across multiple vendors to avoid a single point of failure.
- Edge computing. Process and store data on local or regional servers instead of distant data centres. This improves reliability, speed, and data control.
Together, these methods create a resilient, decentralised system. The old advice still fits perfectly: don’t put all your eggs in one basket.
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