When Amazon.com's outage last week -- specifically, the failure of its EBS (elastic block storage) subsystem -- left popular websites and services such as Reddit, Foursquare, and Hootsuite crippled or outright disabled, the blogosphere blew up with noise around the risks of using the cloud. Although a few defenders spoke up, most of these instant experts panned the cloud and Amazon.com. The story was huge, covered by the New York Times and the national business press; Amazon.com is now "enjoying" the same limelight that fell on Microsoft in the 1990s. It will be watched carefully for any weakness and rapidly kicked when issues occur.
It's the same situation we've seen since we began to use computers: They are not perfect, and from time to time, hardware and software fails in such a way that outages occur. Most cloud providers, including Amazon.com, have spent a lot of time and money to create advanced multitenant architectures and advanced infrastructures to reduce the number and severity of outages. But to think that all potential problems are eliminated is just being naive.
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Some of the blame around the outage has to go to those who made Amazon.com a single point of failure for their organizations. You have to plan and create architectures that can work around the loss of major components to protect your own services, as well as make sure you live up to your own SLA requirements.
Although this incident does indeed show weakness in the Amazon.com cloud, it also highlights liabilities in those who've become overly dependent on Amazon.com. The affected companies need to create solutions that can fail over to a secondary cloud or locally hosted system -- or they will again risk a single outage taking down their core moneymaking machines. I suspect the losses around this outage will easily track into the millions of dollars.