"It was supposed to be a routine Tuesday. Employees trickled into the office of a mid-sized logistics company; some grabbed coffee, others settled at their desks. As they tried to access their shipment-tracking dashboards, schedule pickups, or even log in to the HR portal, critical systems inexplicably went offline. Chaos ensued. The IT team scrambled to diagnose the problem, initially confused because their company's tech infrastructure didn't rely on the major cloud service that had been hit by a significant outage that morning."
"Hours later, they learned their software vendors-and their vendors' vendors-depended on that cloud provider. Like many others, the company unexpectedly fell victim to the complexities of modern cloud systems. This story echoes across industries every time an infrastructure as a service (IaaS) provider stumbles. It happens more often than most realize. The truth is that we've constructed a digital world on a surprisingly fragile foundation, building whole economies, sometimes unknowingly, on just a handful of hyperscaler companies."
A mid-sized logistics company experienced critical system failures preventing access to shipment-tracking dashboards, scheduling tools, and the HR portal. The IT team initially believed the outage did not affect their infrastructure but later discovered that software vendors and upstream providers depended on the same cloud provider. A small number of hyperscalers now underpin many digital services, creating indirect dependencies through partner services, APIs, and infrastructure providers. When a hyperscaler suffers an outage, the effects cascade across vendor chains and can incapacitate downstream customers. The resulting fragility means businesses can be blindsided by outages unless they map dependencies and manage third-party cloud risk.
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