Cloud risk causes critical disruption

The extent of disruption to cloud-based services has been outlined in a new report.

According to Managing Cloud Outage Risk: Cloud Downtime in 2022 by insurance provider Parametrix, leaders in the provision of cloud services, who together control more than two-thirds of the global cloud market, suffered 1,190 performance disruptions across their cloud landscape in 2022, of which 492 were classified as critical.

About a third of events impacted US cloud regions, while the balance of the critical events measured were split roughly evenly between Europe, Asia, and the rest of the world. The report includes data from the Parametrix Stability Index, which is based on the overall performance of cloud providers’ regions during the year, and informs the insurer’s long-term predictive model of future downtime risk by region. 

Managing Cloud Outage Risk: Cloud Downtime in 2022 also includes the findings of a recent Parametrix survey of business decision makers, 82% of whom said their organisation or product is dependent on their availability of the cloud. 

60% said they are “very concerned” about cloud downtime  and 41% are more concerned than last year 

31% said eight hours of cloud downtime during business hours would be catastrophic; while 36% said eight hours of cloud downtime would be a non-recoverable, with uninsured loss 

23% estimated downtime costs their organisation $500,000 or more per hour .

Parametrix uses technology to monitor the availability and performance of the top cloud service providers worldwide. Its proprietary Parametrix Cloud Monitoring System (PCMS) identified four times the number of disruptions than were reported by the providers themselves.

“Downtime is an inevitable reality for almost every business,” said Yonatan Hatzor, co-founder and CEO of Parametrix. “As companies increasingly rely on cloud providers for day-to-day operations, they are exposed to the real risk of downtime. Our powerful combination of technology and skills allows us to deliver solutions to this leading risk of the digital age, which conventional cyber insurance policies do not cover effectively.”