Cloud Computing failure accounts for $70 million loss since 2007: International Working Group Report

Companies generally underestimate the economic impact of cloud failures, reported a new study. According to the study conducted by International Working Group on Cloud Computing Resilience (IWGCR), the economic impact of cloud services failure accounts to be more than $71.7 million since 2007. The new report titled ‘Availability Ranking of World Cloud Computing’ claims that, since 2007, the total downtime of 13 cloud services was about 568 hours.

Cloud computing revenues in question. Image source

The International Working Group on Cloud Computing Resilience formed in March 2012 published this report after conducting a study on the basis of the press reports of cloud failures of popular services like Twitter, Amazon, Facebook, Microsoft, Google, Paypal and Yahoo.  This is first time an attempt is made to find out the reliability of cloud services. According to the researchers, reliability of cloud services is becoming crucial as more and more companies are adopting the services as a way to trim down their IT investment and streamline their business processes.

Excerpts from the report:

  1. The total downtime of the cloud services since 2007 averages to 568 hours.
  2. The average loss incurred for an hour long cloud service failure amounts to $89,000 to $2,25,000.
  3. The cost of failure of services at Google, Microsoft and Amazon for an hour was estimated to be $200,000 an hour.
  4. The average availability of cloud services is 99.99% per year which is far from the required reliability of 99.999%.
  5. It is more important for the service provided to be reliable as today government agencies also use cloud services for critical missions and operations.
  6. The down time that may last for weeks or days can affect million of users.
  7. The industry is still unaware about the lack of reliability of cloud services.

Further, the report has stated that the figures projected are not precise because many cloud failures were not made public. The team has announced usage of new methods for future research so as to arrive at more reliable figures and facts.

Cloud computing has slowly started gaining importance in the business world. For many, cloud services are a boon for their business especially for small-medium enterprises. Cloud technology allows the companies to reduce cost as they do not have to make heavy IT investments.

However, failure of the technology service can be catastrophic than one can imagine because failures in IT have more chances to cause large scale disruption in business than the support they extend. So it is always wise to identify the pros and cons of the cloud services and plan accordingly before adopting the same.

You can download the report by following the link

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