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AWS outage exposes growing fragility in the cloud economy

The news: Amazon Web Services (AWS) suffered an outage that continued to disrupt services into Monday afternoon, degrading services across more than a thousand company websites, including Disney+, Reddit, McDonald’s, Facebook, United Airlines, Coinbase, Perplexity, and Canva, per The Verge.

The AWS Health Dashboard released an official statement explaining that the problem began in the US-EAST-1 (Northern Virginia) region just after midnight ET, describing it as an “operational issue causing increased error rates and latencies” affecting multiple services.

The operational failure made evident how deeply modern commerce, communication, and entertainment depend on a single cloud backbone.

  • More than 6.5 million outage reports were filed globally, per The Guardian, with the heaviest impact felt across North America and Europe.
  • UK government websites, fintech platforms, and cloud-based games like Roblox and Fortnite were also down.

AWS said recovery began within hours.

Why it matters: The disruption’s scale could mirror 2024’s CrowdStrike–Microsoft outage, which grounded flights and crippled businesses worldwide. Both incidents revealed the complication of relying on a single cloud provider in global infrastructure.

Digital ecosystems are scaling faster than their safeguards. Overreliance on single services endangers brand reputation and customer trust.

What this means for brands: Businesses reliant on a single cloud vendor could face operational, legal, and reputational risks when outages hit public services, banks, and travel sectors simultaneously.

Brands should audit vendor dependencies, test crisis communication flows, and prioritize multi-cloud failover readiness to safeguard user experience during inevitable disruptions.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.

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