Huge internet blackout sees Amazon Web Services go down: "Major implications for businesses"

A HUGE internet blackout has seen apps that use Amazon Web Services (AWS) across the world go offline with fears it will have “major implications for businesses”.

Many of the biggest apps have gone down in an issue affecting AWS, customers report.

Banks are also affected by the outage, including Barclays, Halifax, Lloyds and the Bank of Scotland, it has been claimed.

HMRC, Xero, Canva and Klaviyo are also affected, customers are reporting.

AWS powers much of the infrastructure behind many websites – which is why the impact is so widespread.

AWS, which is part of the retail giant Amazon, said in an update on its status page there it is suffering from "increased error rates and latencies" for multiple services.

In a statement on its website, it said: "We are actively engaged and working to both mitigate the issue and understand the root cause."

Natalie Ormond, Owner at Smallkind, said her small business is reliant on AWS.

She said: "Canva and Klaviyo are also down. As a company of one in e-commerce I’m heavily reliant on tools like these for design, email marketing and all sorts of essential tasks. I couldn’t run my business alone without them. 

“They’re fantastic for small businesses but when they don’t work it’s a bit scary. It’s a good reminder to plan ahead and have a back up option. Especially at this time of year in retail. I guess I should have written my email newsletter on Friday after all.”

Simon Jones, Chief Operating Officer at VP MED Group, said it could have profound effects for businesses.

He added: “I noticed early this morning that the HMRC app wasn't working. Why I was checking my PAYE and tax return information at 6.30am on a Monday morning is still a mystery to me. But then, trying to log on to my Barclays account, same thing. 

"Whilst slightly inconvenient, I'm sure it will be resolved. But I can see major implications for business users being locked out of banking apps and HMRC when we're mid month and salaries are being processed. Another concern is the connection between Cloudflare and AWS. 

"It was only in August of this year that another outage caused severe network congestion between Cloudflare and that (same) AWS facility. This is a recurring theme between the two behemoths of online security and cloud-based web services. Are we too reliant on them for online business and finance services?”

Colette Mason, Author & AI Solution Architect at Clever Clogs AI, said businesses need a back-up plan.

She added: "This is a masterclass in what happens when businesses centralise everything on infrastructure they don't control. Companies chasing ‘digital transformation’ conveniently forget the first rule of enterprise systems: single points of failure will bite you. 

"Delegating to third-party apps is attractive and makes sense, until it crashes. Then businesses discover the real cost of efficiency: customers locked out of their money, mission-critical processes grinding to a halt, and no backup plan because they are optimised for convenience over resilience. 

“Centralised data centres are a honeypot for hackers and bad actors. The real question isn't ‘when will AWS fix this?’ It's ‘why are so many critical builds on infrastructure with no Plan B?’”

Dr Marianne Trent, Clinical Psychologist at Good Thinking Psychological Services, said it will have a “significant impact”.
 

"It's not a great day to be a small business owner who was planning to do some Canva designs and Invoicing and Reconciliations on Xero as both platforms are down and causing me headaches. 

"It is frustrating when paying monthly premiums and expecting to be able to work on important business tasks when you then can't do that. It's a modern world problem I know but it doesn't make it any less annoying and we shouldn't invalidate ourselves by just putting up with it and not acknowledging the frustration it causes. 

"We must also remember then when banking apps are down it can have a big and significant impact on processes big and small from buying groceries, paying bills and even buying cars and houses."

Justin Moy, Managing Director at EHF Mortgages, said the outage showed the closure of high street banks in a new light.

He added: “This latest outage reminds us all that whilst online banking and apps are very convenient, when they don't work the closure of the high street banking offices makes it so much harder for personal and business customers to function, especially if housing transactions are delayed or don't complete on time.”

Michelle Lawson, Director at Lawson Financial, said we are becoming too reliant on technology.
 

She continued: "Technology is becoming a daily inhibitor rather than progression. Putting all your eggs in one basket with a company is also foolish. 

“Seems a bit bizarre that there are all these problems all of a sudden with major companies though – is the cyber war edging up a notch just to show us how dependent on technology we have all become?”