corporate collective spending With $61 billion invested in cloud infrastructure in Q4 2022, there will be more growth to come. However, businesses are poorly protected against losses from cloud downtime.
“Cloud service providers typically offer a service level agreement (SLA) outlining their commitment to service availability and performance,” AV8 General Partner Amir Kabir told TechCrunch+.However, while penalties are often involved If the agreed service level is not metthese seldom make up for the full loss that a cloud service outage might inflict on the customer.
Case in point: After millions of websites went offline large data center fire In France, a small online seller complain in the media Her cloud provider, OVHcloud, only offered her a few months’ worth of free hosting in vouchers—about $30, when she estimated her actual losses were closer to $2,000.
For eCommerce businesses large and small, it’s easy to see how cloud downtime can lead to lost revenue. But a cloud service outage can negatively impact revenue for all kinds of businesses, whether because of lost productivity or because they have their own SLAs with their customers and they may owe them compensation.
Usually the corollary of risk is insurance against it, but when it comes to cloud downtime, the insurance industry hasn’t quite caught up.