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Major outage at Amazon disrupts businesses across the U.S. – CP24 Toronto's Breaking News

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Frank Bajak And Barbara Ortutay, The Associated Press


Published Wednesday, December 8, 2021 7:34AM EST


Last Updated Wednesday, December 8, 2021 7:34AM EST

A major outage in Amazon’s cloud computing network Tuesday severely disrupted services at a wide range of U.S. companies for more than five hours, the latest sign of just how concentrated the business of keeping the internet running has become.

The incident at Amazon Web Services mostly affected the eastern U.S., but still impacted everything from airline reservations and auto dealerships to payment apps and video streaming services to Amazon’s own massive e-commerce operation. That included The Associated Press, whose publishing system was inoperable for much of the day, greatly limiting its ability to publish its news report.

Amazon has still said nothing about what, exactly, went wrong. In fact, the company limited its communications Tuesday to terse technical explanations on an AWS dashboard and a brief statement delivered via spokesperson Richard Rocha that acknowledged the outage had affected Amazon’s own warehouse and delivery operation but said the company was “working to resolve the issue as quickly as possible.”

Roughly five hours after numerous companies and other organizations began reporting issues, the company said in a post on the AWS status page that it had “mitigated” the underlying problem responsible for the outage, which it did not describe. It took some affected companies hours more to thoroughly check their systems and restart their own services.

Amazon Web Services was formerly run by Amazon CEO Andy Jassy, who succeeded founder Jeff Bezos in July. The cloud-service operation is a huge profit center for Amazon. It holds roughly a third of the $152 billion market for cloud services, according to a report by Synergy Research — a larger share than its closest rivals, Microsoft and Google, combined.

To technologist and public data access activist Carl Malamud, the AWS outage highlights how much Big Tech has warped the internet, which was originally designed as a distributed and decentralized network intended to survive mass disasters such as nuclear attack.

“When we put everything in one place, be it Amazon’s cloud or Facebook’s monolith, we’re violating that fundamental principle,” said Malamud, who developed the internet’s first radio station and later put a vital U.S. Securities and Exchange Commission database online. “We saw that when Facebook became the instrument of a massive disinformation campaign, we just saw that today with the Amazon failure.”

Widespread and often lengthy outages resulting from single-point failures appear increasingly common. In June, the behind-the-scenes content distributor Fastly suffered a failure that briefly took down dozens of major internet sites including CNN, The New York Times and Britain’s government home page.

Then in October, Facebook — now known as Meta Platforms — blamed a “faulty configuration change” for an hours-long worldwide outage that took down Instagram and WhatsApp in addition to its titular platform.

This time, problems began midmorning on the U.S. East Coast, said Doug Madory, director of internet analysis at Kentik Inc, a network intelligence firm. Netflix was one of the more prominent names affected; Kentik saw a 26% drop in traffic to the streaming service.

Customers trying to book or change trips with Delta Air Lines had trouble connecting to the airline. “Delta is working quickly to restore functionality to our AWS-supported phone lines,” said spokesperson Morgan Durrant. The airline apologized and encouraged customers to use its website or mobile app instead.

Dallas-based Southwest Airlines said it switched to West Coast servers after some airport-based systems were affected by the outage. Customers were still reporting outages to DownDetector, a popular clearinghouse for user outage reports, more than three hours after they started. Southwest spokesman Brian Parrish said there were no major disruptions to flights.

Toyota spokesman Scott Vazin said the company’s U.S. East Region for dealer services went down. The company has apps that access inventory data, monthly payment calculators, service bulletins and other items. More than 20 apps were affected.

Also according to DownDetector, people trying to use Instacart, Venmo, Kindle, Roku, and Disney+ reported issues. The McDonald’s app was also down. But the airlines American, United, Alaska and JetBlue were unaffected.

Madory said he saw no reason to suspect nefarious activity. He said the recent cluster of major outages reflects how complex the networking industry has become. “More and more these outages end up being the product of automation and centralization of administration,” he said. “This ends up leading to outages that are hard to completely avoid due to operational complexity but are very impactful when they happen.”

It was unclear how, or whether, the outage was affecting the federal government. The U.S. Cybersecurity and Infrastructure Security Agency said in an email response to questions that it was working with Amazon “to understand any potential impacts this outage may have for federal agencies or other partners.”

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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