The executive summary of the Uptime Institute Annual outage analysis for 2024 came out last Friday, which can be viewed as a PDF or covered in a webinar.
WHAT INDUSTRIES ARE BEING HIT THE MOST?
The above graph seems simple on the surface but is probably the most important data out of the report. Cloud and “internet giants,” digital services, and telecoms suffer the most, by FAR, accounting for 75% of “high profile outages” in the data center world.
Now here’s the question: What do the cloud/internet giants, digital services, and telecom companies all have in common?
Take a minute, and let it run through your mind… consider the overall digital world in a holistic way.
While you’re thinking about the answer, let’s bring up a few other points that most people don’t think about, regarding the colocation data center market.
Colocation data center failures significantly amplify business impacts within the digital world, primarily because a single colocation facility often hosts the critical infrastructure of numerous companies. So when a colocation data center experiences an outage, it doesn't just disrupt operations for a single entity; instead, it cascades across all the businesses reliant on its services, magnifying the overall effect on the digital economy.
Cloud companies and “internet giants” have their own networks of interlinked data centers, where loads are easily and seamlessly transferred from one building to another. Their integrated systems are optimized for computing work among dozens of facilities, are very robust, and are extremely well-maintained. BUT, these companies must go to colocation facilities for their pipelines back out to the internet, and the rest of the world. Cloud companies are not in the business of organizing points of presence to the world, getting ISPs lined up (and all that entails), that’s the business of colo companies.
Telecom companies are in the business of… Well, telecommunications. So again, they rely on colocation companies for their business operations, peripheral services, internet presence, etc. Telecom companies put most of their capital expenditures into infrastructure that supports their core business, which doesn’t include data center operations; it’s cheaper to outsource, same as with cloud companies.
“Digital services” include streaming services, digital communications, business automation, social media and online banking, for example. As with the above examples, these are services where their core business is digital products, not data centers. Thus, they heavily rely on colocation providers, as an option that is perceived as both cost-effective and agile.
WHAT IS THE COMMON LINK?
It’s simple:
All three sectors business sector who suffer from outages are the ones that rely most heavily on colocation companies for their digital pipelines to the world, or much of their enterprise IT service support.
To be blunt, the reason why data center outages are occurring 1000X more than they should be, is because of maintenance mismanagement of colocation companies.
Unfortunately, enterprise IT customers of colocation companies suffer a loss of agency when they go to colocation companies, surrendering all control of the management of critical facilities.
So enterprise IT companies must trust SOC-2 certificates and SLAs offered by the colocation companies.
And as I have clearly explained, colocation SLAs are worthless, because you will not receive compensation for damages resulting from colo companies failing to meet the terms of the SLAs. This point is now starting to gain visibility; in lower right corner of the image directly above it says “the data underlines the importance of third party agreements/the need to focus on SLAs.” Uptime and other groups are now starting to recognize this as a real problem.
THERE IS A SOLUTION
In contrast, the independent audit program we've established at Amerruss LLC charts a new course in ensuring data center resilience. Through careful monitoring and auditing, our program has consistently guaranteed optimal performance, thereby reducing the need for excessive redundancy and lowering operational costs.
Our success story with Vanguard, a global financial giant with over $7.5 trillion in assets, epitomizes our capability. Over 6 ½ years, Vanguard's extensive portfolio of more than 60 sites, including Tier-II and Tier-III facilities, experienced zero unplanned outages, a feat considered statistically impossible according to industry standards.
The Amerruss Resilience Program extends a profound value proposition: not only meeting but exceeding industry standards and expectations. Our program's foundation is built on deep technical expertise, bolstered by real-time feedback through quarterly audits and a proactive approach to maintenance and risk management.
For companies dependent on data centers for their operational continuity and competitive advantage, the choice becomes clear. The Amerruss Resilience Program emerges as THE model of reliability and security in an industry fraught with uncertainties.
We invite you to engage with us at Amerruss LLC. Let's explore how we can secure your IT infrastructure against unforeseen disruptions, ensuring your data center operations deliver the resilience your business requires. Don’t leave your data center's resilience to chance. Reach out, and let us safeguard your IT assets with the utmost standards of reliability and efficiency.
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