Cloud computing concentration and systemic risk


I came across one interesting blog post over at Finextra which got me thinking about an issue that has been in the back of my mind for some time… the systemic risks of cloud computing concentration. It seems everyone has made the move or are making the move from maintaining large, expensive data centers to Amazon, Microsoft, or Google taking care of buildings, infrastructure, and hardware. I can’t blame them as sourcing new servers and other hardware has become a much more difficult and time consuming process now that all of our supply chains seem to be broken.

But there’s also a downside – when one of the big cloud providers is having a bad day, people notice – Most of the websites and services we rely on depend on at least one of these providers being active. And there have been some major failures over the past year. So far, these defaults have not had a systemic impact on the financial system. So far.

While the big cloud…

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