If a major cloud provider was taken down – even for a few days – the cost to business could be astronomical. A new report from Lloyd’s of London and international risk modeller AIR Worldwide estimates that a three to six day cloud outage in the US might cost as much as $15 billion. SMEs would be harder hit than blue chips, as they are bigger users of cloud services but less likely to carry cyber insurance.
Whether as a result of a cyberattack, a natural disaster, equipment failure or staff error, a cloud failure would have a serious impact on a company’s bottom line, industry reputation and customer relations.
The top three cloud providers are Amazon Web Services, Microsoft Azure, and Google Cloud. Both AWS and Azure have suffered outages in recent years – highlighting the importance of taking out effective insurance cover.