Is Amazon too big to fail?

aws fault tolerance

Amazon is the huge online retailer everyone knows well. However there is another side of Amazon, namely Amazon Web Services that hosts many of the internets largest websites.

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In the infrastructure & operations world, Amazon is the Citibank, JP Morgan or Goldman Sachs of cloud providers.

1. Outage takes down Yelp & Netflix

As reported on Thousand Eyes among other places, Amazon had a major outage yesterday.

Amazon experienced a problem with how they route data over the network. Routing is the technical term for how the internet moves data around. When routing goes wrong at a provider like Amazon, the websites they host will go down too.

Also: Are we fast approaching cloud-mageddon?

2. Automation can’t save you

Netflix is famous for their great streaming service, and shows like House of Cards.

On the technology side they’re also pretty famous. They deploy legions of Amazon servers to stream movies using Chaos Monkey. This open source suite allows them to remain resilient even if individual servers or components go offline.

Yet a heavy reliance on Amazon itself, meant a wider outage for them was also an outage for Netflix.

Related: What tech do startups use most?

3. Of cloud monopolies

Amazon’s dominance in the cloud hosting space is incredible. There are providers that can beat them in compute power, speed & price. But with their incredible reach of global datacenters & relentless growth they are still the first choice for most internet shops.

What is the downside of such dominance? What happened yesterday illustrates it clearly. When Amazon goes down, so do financial companies like Experian,

Read: Do managers underestimate operational cost?

4. Diversify your data portfolio

In the banking world we can put together legislation, regulating banks. We can enact capital requirements or consider breaking up the largest ones. For investors & consumers you can diversify your portfolio, putting money in different asset classes & institutions. If one fund fails, others will balance it out.

We can do the same with cloud hosting. For larger internet applications, deploying on multiple clouds can be very beneficial. In that case an outage at Amazon, would merely mean your global load balancer kicks in, sending traffic to your plan B servers.

Also: Replicate big data to Amazon Redshift with Tungsten

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