In today's Cloud Wars Minute, I discuss the recent AWS outage, identifying five reasons that this outage will significantly impact the company's reputation.

Highlights

00:30 — AWS experienced a big outage this week, impacting multiple companies and services at a time when AWS, relative to its hyperscaler competitors, is in a decline. I think there are five core reasons that its reputation will suffer from this outage.

01:15 — The magnitude of the outage will greatly impact the company's reputation. There is an enormous range of business customers directly affected by this, reaching millions of people across multiple industries.

01:50 — There's never a "good" time for events like this to occur, but this outage happened at the beginning of the holiday season. In the minds of many business leaders, this season is where they get a large percentage of their annual revenue through online services. With this disaster, can AWS be fully trusted?

02:30 — AWS is the slowest-growing hyperscaler. In a vacuum, it reached nearly $31 billion in revenue with a 17.5% growth rate in Q2. However, AWS is growing at a much slower rate compared to its hyperscaler competitors — Microsoft, Google Cloud, and Oracle.

03:37 — AWS also has the slowest-growing RPO or backlog. AWS reported its backlog up to 25% to almost $200 billion. Again, in the world of the vacuum, that's terrific. But relative to the others, this wasn't very good at all.

04:38 — This outage came at a time when the other hyperscalers are distinguishing themselves with powerful AI strategies and services. AWS has had some AI properties but not at the scale of Microsoft with Copilot and ChatGPT, Google Cloud with the launch of Gemini Enterprise, and Oracle with its Oracle Cloud Infrastructure (OCI).

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