Parametrix’s Cloud Outage Risk Report 2024 shows that critical downtime hours for Google Cloud services increased by 57%, while MS Azure declined by more than one fifth from the year before. Amazon Web Services again proved the most reliable.
Critical cloud service interruption events among the “big three” public cloud providers increased by 18.0% and lasted 18.7% longer in 2024 than in 2023, according to Cloud Outage Risk Report 2024 from Parametrix, the leading provider of digital business interruption risk solutions.
In 2024, cloud monitoring by Parametrix recorded six cloud outage events that lasted more than ten hours each. Together the downtime from these six events alone totaled nearly 100 hours.
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The majority of critical service interruptions, both by number and duration, occurred in North America, but significant events also happened throughout Europe, Asia, and other areas. Similar to 2023, North America’s share of downtime hours was roughly 60% and human error continues to be the leading cause of cloud service interruptions, accounting for 68% of all events in 2024.
“Cloud infrastructure’s critical importance to business operations worldwide was underscored in 2024,” said Jonathanan Hatzor, Co-Founder and CEO of Parametrix. “Major incidents like the global CrowdStrike outage in July, AWS’s service disruption in the US-EAST-1 region, and Google Cloud’s power failure in Frankfurt highlight the growing systemic risks faced by enterprises dependent on digital supply chains.”
He continued: “The rapid adoption of generative AI has further accelerated demand for cloud services. The top three cloud providers invested $82 billion in infrastructure in Q3 2024 alone. While this growth fuels innovation, it also amplifies the risks of cloud outages, which can disrupt operations, diminish customer trust, and result in significant financial losses.”
About Parametrix
Parametrix is the leading provider of cloud outage analytics and insurance solutions. We specialize in underwriting parametric insurance for system interruption, helping businesses protect against the costly impacts of downtime. Leveraging proprietary technology, we continuously monitor third-party IT services, gathering granular data on service performance and interruptions. This data enables us to assess risk accurately, provide instant insurance quotations, and streamline claims payments, ensuring our clients receive fast, reliable support when they need it most. Parametrix is a Managing General Agent and Lloyd’s Coverholder whose policies are backed by major A-rated global insurers. The company is based out of New York.
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