Amazon Apologizes for Server Outage, Offers Credit
Amazon Apologizes for Server Outage, Offers Credit

Amazon says a small amount of data will be lost due to its Web Services outage that began last Thursday. According to a report at The Register, about 0.07% of the EBS storage volumes in the East Region of its Web Services infrastructure are not "fully recoverable."

"We are digging deeply into the root causes of this event and will post a detailed post mortem," the company notes at the Web Sevices dashboard.

Does Amazon's outage have greater implications for cloud computing? Yes and no, according to a well thought-out post at Slate. While the outage provides many lessons for both Amazon and cloud services users, the authors don't believe people will walk away from the cloud. Large companies may consider internalizing some functions - and their costs - but smaller companies depend too much on cloud computing, they write.

"Small start-ups are not going to run away from the cloud or Amazon. The cost savings across the board and the ability to avoid capital commitments are just too enormous to sidestep. No venture capitalist is going to fire a start-up for using Amazon, and no sophisticated investor will accept a start-up spending extra time and money to build out its own infrastructure when its business is unproven. Moreover, the next wave of start-ups should be able to learn from last week's outages, figuring out how to avoid some of the problems that befell other companies."

Amazon's investors haven't been fazed by the outage. Shares of Amazon barely moved in the two trading days since the outage began. It wasn't until the company released its first quarter results at the end of the trading day Monday that shares dropped. Lower operating margins due to increased spending, not concerns about the outage, drove share prices down 1.68% to $182.30 on Tuesday. However, shares rebounded with a 4.3% gain to $190.16 in early Wednesday trading.