Counting the cost of AWS outage: Shocking per hour figures revealed
Amazon Web Services' outage has disrupted services for over 1,000 firms, potentially costing billions in losses.
More than 1,000 firms have been affected by Amazon Web Services' outage, which could cost retailers and corporations billions of dollars in lost income and service interruption, according to Parcelhero, a home delivery expert, ACW reported.
Access to delivery applications, social media sites, banks, and airlines were affected by today's Amazon Web Services outage. According to Parcelhero, a home delivery company, a similar incident at Crowdstrike last year caused Fortune 500 companies $5.4 billion in losses and affected several businesses worldwide.
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AWS outage: Here's what expert said
David Jinks M.I.L.T., Head of Consumer Research at Parcelhero, said: “Yet again, global e-commerce businesses and services have been reminded how fragile the online ecosystem truly is, when so many companies are reliant on a handful of key service providers.”
The outage has impacted the services of over 1,000 firms, and Downdetector, which analyzes outages, has received over eight million reports from users citing issues with accessing websites, applications, games, and online banking services.
Amazon, Bank of Scotland, Duolingo, Eventbrite, Flickr, Fortnite, Halifax, HMRC, Lloyds Bank, Perplexity AI, Playstation Network, Pokemon Go, Slack, Square, WhatsApp, Wordle, Xero, and Zoom are among the companies whose services are disrupted due to AWS outage.
As of this writing, Amazon Web Services stated that while the root cause has been resolved, a complete recovery will require further time.
Even though delivery services and e-commerce businesses were not directly affected by the AWS outage, payments might have failed because of banking complications and other problems, David Jinks explained.
AWS outage: Impact on airlines
He further stated that the issues with airline systems may also affect the global supply chain since most of the world's air freight is transported in the bellyhold of passenger planes. Airports and ports were impacted during the Crowdstrike outage, but the effect on airlines appears to be limited to slight disruptions so far.
“Today’s outage is thought to have occurred initially at Amazon‘s US-EAST-1 region in Virginia, its original and largest web services location. Even though the initial issue that caused the problem was reportedly fixed within hours, the ongoing problems could affect some companies for many more hours if not days, if the Crowdstrike incident’s impact is repeated.”
AWS outage: How much it costing?
While it's difficult to estimate the precise financial impact of an outage like the AWS outage, Tenscope has attempted to do so.
According to the headline estimate, major websites lose $75 million every hour when they go down, with Amazon responsible for a large portion of the losses (about $72 million), TechRadar reported.
The analysis goes on to detail the potential costs for each of the main websites that were hit today:
Amazon: $72,831,050 per hour
Snapchat: $611,986 per hour
Zoom: $532,580 per hour
Roblox: $411,187 per hour
Fortnite: $399,543 per hour
Canva: $342,466 per hour
Slack: $194,064 per hour
Reddit: $148,402 per hour
