23% of companies say downtime costs them $500K+ per hour
Businesses were affected by limited access to cloud storage and the cloud-native services provided by Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) during 1,190 events in 2022.
NEW YORK — March 20, 2023 — The world’s leading providers of cloud services, who together control more than two-thirds of the global cloud market, suffered 1,190 performance disruptions across their cloud landscape in 2022, of which 492 were classified as critical, according to Managing Cloud Outage Risk: Cloud Downtime in 2022, a new report by Parametrix, the leading provider of cloud downtime insurance.
About a third of events impacted US cloud regions. The balance of the critical events measured were split roughly evenly between Europe, Asia, and the rest of the world. More detail about cloud performance in 2022 can be found in the report. It includes data from the Parametrix Stability Index, which is based on the overall performance of cloud providers’ regions during the year, and informs the insurer’s long-term predictive model of future downtime risk by region.
Dependency on the cloud
Managing Cloud Outage Risk: Cloud Downtime in 2022 also includes the findings of a recent Parametrix survey of business decision-makers, 82% of whom said their organization or product is dependent on their availability of the cloud.
- 60% said they are “very concerned” about cloud downtime
- 41% are more concerned than last year
- 31% said eight hours of cloud downtime during business hours would be catastrophic
- 36% said eight hours of cloud downtime would be a non-recoverable, uninsured loss
- 23% estimated downtime costs their organization $500,000 or more per hour
Parametrix Cloud Monitoring System
Parametrix uses technology to monitor the availability and performance of the top cloud service providers worldwide. Its proprietary Parametrix Cloud Monitoring System (PCMS) conducted 36.4 billion availability and functionality tests on more than 250 cloud data centers over the course of 2022 to measure in real time the outage periods later reported by providers, but also the impaired services and other disruptions which are not always revealed. PCMS identified four times the number of disruptions than were reported by the providers themselves.
“Downtime is an inevitable reality for almost every business,” said Yonatan Hatzor, co-founder and CEO of Parametrix. “As companies increasingly rely on cloud providers for day-to-day operations, they are exposed to the real risk of downtime. Our powerful combination of technology and skills allows us to deliver solutions to this leading risk of the digital age, which conventional cyber insurance policies do not cover effectively.”
About Parametrix
Parametrix, the leading provider of cloud monitoring, modeling, and insurance services, is a Managing General Agent and Lloyd’s Coverholder based out of New York that underwrites parametric insurance against digital supply chain interruption. Parametrix uses proprietary technology to continuously monitor the performance of a variety of third-party IT services across the globe, and to collect granular data on service interruptions. It uses that data to assess risk, provide instant insurance quotations, and to streamline claims payments, which are delivered within days. Parametrix policies are backed by major A-rated global insurers.
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