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On 20 October 2025, AWS (Amazon Web Services) experienced a major service outage that impacted businesses and consumers worldwide. For hours, vital services across various industries, from retail and social media to banking and government services, were disrupted. The outage, which primarily affected AWS's DynamoDB, raised serious concerns about cloud security, data sovereignty, and the reliability of cloud services, especially for businesses dealing with sensitive and regulated data. For companies in the financial, healthcare, and government sectors, this event forces a critical examination of their cloud infrastructure choices. With increasing dependence on cloud providers like AWS, should organisations be more cautious in trusting critical operations to a US-based cloud provider? Let's explore.
The AWS Outage
AWS’s recent outage, affecting its DynamoDB service, has thrown a spotlight on the risks associated with relying on third-party cloud services. DynamoDB, a NoSQL database developed by Amazon, powers applications worldwide by handling everything from customer data to transaction logs. While the platform is popular for its scalability and flexibility, it’s also a key resource for many organisations, including regulated entities such as banks, healthcare providers, and government agencies.
The outage, which originated in the United States, had ripple effects across Europe and other parts of the world, with significant disruptions. As detailed in BBC reports, businesses from sectors as diverse as e-commerce, education, and financial services were unable to operate, resulting in widespread frustration and losses. For companies that rely on AWS's infrastructure, this was a stark reminder of how an issue at a centralised location can cause chaos on a global scale.
From a technical perspective, the disruption was due to a network issue at one of AWS's core data centres in the US. While AWS has since resolved the incident, it underscores the vulnerability that arises when a business's digital backbone is dependent on a single third-party provider. But beyond the immediate technical failings, the incident raises deeper questions about the long-term risks of outsourcing critical infrastructure to cloud service providers, particularly in sectors where compliance and data privacy are paramount.
The Impact of a US-Based Outage on European Businesses
One of the primary concerns raised by the outage is how an issue in a US data centre can cause significant disruption to European businesses. This raises important questions about data sovereignty, especially for companies in highly regulated industries such as banking, healthcare, and government services. In these sectors, where sensitive data is involved, organisations need to ensure that their data is protected and compliant with local regulations, such as GDPR in the UK and Europe.
If the AWS outage can bring down services in the UK and across Europe, what assurances do businesses have that their data is secure or even accessible during an incident? Many UK businesses, including financial institutions like Lloyds Bank, rely on AWS for various applications. Yet, these institutions are also bound by strict regulatory requirements that mandate the protection of sensitive data. How can businesses justify hosting this data in the US, especially when outages can leave them exposed to significant operational risks?
The fact that this issue arose from an outage in a US data centre presents a dilemma for companies using AWS to host sensitive data. In theory, AWS's global network of data centres provides redundancy, but in practice, a centralised outage can have a cascading effect. This becomes even more concerning when you consider that cloud providers like AWS store vast amounts of sensitive information, from financial data to health records. As companies in regulated industries consider cloud strategies, it’s crucial they address data sovereignty and resilience in their risk management frameworks.
The Reliability of AWS’s Global Infrastructure
While concerns about data sovereignty and the impact of a US-based outage are valid, it's important to note the broader context of AWS’s global infrastructure. AWS operates an extensive network of data centres across multiple regions worldwide, which provides a level of redundancy that many organisations may not have with on-premise solutions. Even though a US data centre experienced issues, AWS is designed to automatically failover to other data centres to minimise downtime.
Moreover, AWS has a track record of reliability, having supported critical infrastructure for some of the world's largest companies without significant outages. Organisations like Netflix, Airbnb, and even government entities like the UK’s HMRC rely on AWS to power key systems. For businesses considering AWS, it’s essential to acknowledge that the benefits of scalability, flexibility, and cost-efficiency often outweigh the risks, particularly when these risks are mitigated with appropriate disaster recovery plans and a multi-region approach to cloud infrastructure.
It’s also worth considering that AWS's DynamoDB, despite being an open-source tool, is heavily managed and integrated within AWS’s ecosystem, making it a robust solution for non-sensitive use cases. In fact, many organisations, including regulated entities, rely on a combination of open-source and proprietary technologies to meet specific needs. The use of open-source databases like DynamoDB is not inherently a vulnerability but rather a strategic choice depending on the application’s requirements. If organisations are using DynamoDB for non-critical parts of their operations, like app interfaces, while securing sensitive customer data on more resilient platforms like Oracle or SQL databases, this might be a reasonable approach given AWS's overall infrastructure reliability.
Conclusion: Is AWS Still a Safe Bet for Regulated Businesses?
The recent AWS outage has underscored the inherent risks that come with relying on a single cloud service provider for critical infrastructure. For regulated industries, this event is a reminder that cloud strategy must be carefully considered, especially when sensitive data is involved. While AWS provides a robust and globally distributed network of services, businesses must evaluate the long-term viability of this model, particularly regarding data sovereignty, resilience, and compliance.
It’s critical for businesses in regulated industries to adopt a hybrid approach—leveraging AWS for scalable, non-sensitive components of their operations while securing sensitive data in more tightly controlled environments. Additionally, disaster recovery plans should include contingencies for cloud outages, even for services as reliable as AWS.
Ultimately, this AWS outage is a wake-up call. While the cloud offers unprecedented opportunities, businesses must remain vigilant about risks, ensuring that their cloud infrastructure aligns with their regulatory obligations and operational needs. After all, the last thing you want is to be down when you’re needed the most.
