In the wake of recent high-profile IT outages involving major technology providers like CrowdStrike, Microsoft Azure, Amazon Web Services (AWS), and Xero, businesses have been faced with critical questions about the reliability of cloud services and how to prepare for unexpected disruptions.
In July, a faulty security update at CrowdStrike triggered the largest global IT outage in history which grounded planes, shut down TV stations, disrupted payments, and cancelled surgeries. Two weeks later, a Microsoft outage in New Zealand affecting products such as Email, Azure cloud computing, and Microsoft Teams impacted thousands of people across the country. And coincidentally, that very same week, Xero experienced a global outage of its mobile app and software caused by an issue at its third-party provider, Amazon Web Services.
This article explores what all businesses can learn from these outages, why cloud services remain reliable, and how organisations can ensure they are prepared to handle core system failures.
So, Does This Mean Your Business Should Abandon Cloud Services?
The recent IT outages and their proximity to each other may have sparked concerns about the dependability of cloud services, however, it is imperative to understand that the likes of Microsoft and AWS remain among the most reliable platforms available, and CrowdStrike still remains one of the most highly regarded security services. The scale of their outages makes headlines because they impact so many people at once – similar to how plane crashes, though rare, attract more attention than everyday car accidents.
Frequent switching between providers because of occasional issues is both impractical and unnecessary. In fact, cloud services generally offer far greater scalability, reliability, and flexibility than on-premises solutions, along with many other benefits such as cost-efficiency and ease of management. These services are designed to provide extremely high levels of reliability and, over time, have and will likely continue to meet extremely high availability targets.
Is Your Organisation Prepared to Weather an IT Crisis?
While cloud services remain reliable, these outages serve as a wake-up call for organisations to assess their own readiness for IT disruptions. The impact of losing access to core systems can be significant, not just for businesses but also for their day-to-day operations.
As technology plays an ever-increasing role in the operations of all businesses, it is even more important to work with a technology partner who understands how to design services to meet business objectives and mitigate any potential issues.
Having a solid plan in place to weather an IT crisis is crucial. Partnering with an IT service provider like Virtuoso can help your organisation understand the risks and business impacts and develop and implement a comprehensive action plan tailored to your specific needs, ensuring you are prepared for unexpected failures.

Preparing for Core System Failures
What would happen if your business lost access to its core systems tomorrow? Would your team know how to continue operations, or how to communicate with customers and staff?
Understanding your risks and creating a plan is essential, especially with the help of an experienced IT partner. Organisations need strategies in place for how they will communicate if core systems become inaccessible. How long can your business tolerate downtime before it causes significant customer or operation disruption? And what is the fallback plan in these situations? Even basic measures, like having alternative contact methods (such as mobile phone numbers for key personnel) stored outside your IT systems, can help maintain operations and customer trust.
The Significance of Disaster Recovery (DR) Testing
Disaster Recovery (DR) testing is one of the most essential components of a business continuity strategy. Regular testing is non-negotiable to ensure that your business can quickly recover from various failure scenarios, including internet outages or critical application failures.
This means conducting thorough tests that simulate real-life scenarios, such as lost access to key systems or devices, and ensuring that your staff and customers remain informed through effective communication strategies during outages and other cyber incidents. As more and more applications move to the cloud it is also important to understand your cloud vendors DR plans and service level agreements as well as their Recovery Point Objectives (how much data could be lost in the event of a major issue) and Recovery Time Objectives (how long would it take to recover from a major issue).
Backup Solutions
Software as a Service providers often offer backup solutions, but it is important to have third-party services in place to ensure data integrity in the event of an outage. For example, Virtuoso uses AvePoint to back up data stored in Microsoft 365 (Email, Teams, SharePoint, OneDrive) to a secure repository in AWS. Similar third-party services are available for many of the more common Software as a Service solutions, such as Salesforce.com and Xero.
By regularly updating and testing backup solutions, businesses can ensure that their data is safe and can be recovered quickly in the event of a system failure.
It’s Time to Invest in Cyber Insurance
Another key takeaway from these recent IT outages is the growing need for organisations to invest in comprehensive cyber insurance. In an era where digital infrastructure forms the backbone of most businesses, the risk of cyber-attacks, data breaches, and service disruptions are higher than ever.
Depending on the policy, cyber insurance can cover cloud-related incidents and provide exclusive access to incident response teams, offering a safety net for businesses in the face of IT outages and cyber incidents.
Conclusion
The recent global IT outages serve as a timely reminder that disaster can strike at any time, no matter the size of the business. But that does not mean that it is a sign to jump ship and abandon proven and reliable services such as CrowdStrike, Microsoft, and AWS. Instead, it is the wake-up call businesses need to ensure they are adequately prepared for whatever comes their way and this responsibility is not absolved by having software and services “in the cloud”.
At Virtuoso, we support businesses to strengthen their IT resilience. Whether it is preparing for system outages, securing your data, or safeguarding against cyber threats, our team is here to support you every step of the way. Contact us today to make sure your business is fully equipped to face the future, no matter what challenges arise.
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