When the Cloud Turns Dark: What the AWS Outage Means for Your Business

On the morning of October 20, around 07:55 UTC, AWS experienced a critical outage that primarily affected the US-EAST-1 region.

On October 20, 2025, a significant technology outage at Amazon Web Services (AWS) disrupted operations for countless businesses across the globe. The ripple effects of this incident have highlighted the vulnerabilities faced by small to medium businesses (SMBs) that rely heavily on cloud services. In this article, we’ll explore the details of the outage, its impacts, and actionable steps SMBs can take to build resilience against such disruptions.

What Happened – A Timeline of the AWS Outage

Amazon Web Services has long been recognized as a leading cloud service provider, powering a vast array of applications and services worldwide. On the morning of October 20, around 07:55 UTC, AWS experienced a critical outage that primarily affected the US-EAST-1 region. Key services impacted included DynamoDB, Simple Queue Service (SQS), and network connectivity, which led to widespread disruption.

The outage lasted approximately 2 to 7 hours, with services being restored by late morning to early afternoon UTC. Initial reports suggest that the root cause was related to DNS resolution issues, which led to cascading failures across the affected services. AWS has indicated that they are conducting ongoing investigations to fully understand the underlying issues.

The Ripple Effects – How the Outage Impacted Businesses Worldwide

The AWS outage caused significant disruptions globally, affecting major platforms and applications such as Slack and Snapchat. For SMBs, the impact was particularly pronounced. Many businesses faced downtime that resulted in lost revenue, customer dissatisfaction, and operational halts—especially those reliant on e-commerce, SaaS tools, or data-dependent services.

Estimates suggest substantial economic losses, with smaller businesses suffering disproportionately due to their limited resources and lack of redundancy plans. This incident serves as a stark reminder of the vulnerabilities that come with cloud dependencies.

Lessons Learned for Small to Medium Businesses

The AWS outage underscores several critical lessons for SMBs:

  1. Dependency Risks: Over-reliance on a single cloud provider or region can expose businesses to significant risk.

  2. Visibility Gaps: Many SMBs lack the monitoring tools necessary to detect issues early, which could mitigate their impact.

  3. Preparedness Shortcomings: Common pitfalls include inadequate backup plans and a lack of testing for disaster recovery scenarios.

Building Resilience – Practical Strategies for SMBs

In light of the recent outage, here are some practical strategies SMBs can implement to enhance their resilience:

  • Multi-region/Multi-cloud Architecture: Consider spreading workloads across multiple AWS regions or adopting a hybrid cloud approach to minimize the risk of a single point of failure.

  • Backup and Disaster Recovery: Implement automated backups, failover systems, and conduct regular drills to ensure preparedness.

  • Monitoring and Alerting: Utilize affordable tools for real-time monitoring to detect issues before they escalate.

  • Cost-effective Alternatives: Explore serverless options or edge computing to reduce exposure to outages.

  • Vendor Diversification: Evaluate when it’s appropriate to consider alternative providers like Azure or Google Cloud to reduce dependency on a single vendor.

Turning Disruption into Opportunity

The AWS outage of October 2025 serves as a critical reminder for SMBs about the importance of resilience in an increasingly cloud-dependent world. By taking proactive steps to audit cloud setups and implement robust strategies, SMB owners can turn disruptions into opportunities for growth and stability.

As we move forward, let's embrace the lessons learned from this incident to strengthen our businesses against future challenges.

Tim Schmitt

Tim Schmitt, Founder at Lighthaus Labs, is a tech pioneer who holds a Bachelor of Science in Computer Engineering from the University of Illinois and an MBA from CTO Academy in London. With his insatiable curiosity, servant leadership style and technical acumen, Tim drives remarkable advancements and fosters innovation everywhere around him.

His journey includes roles at Fortune 50, dot.com Startup and Family Business. Outside work, Tim is a devoted father of two boys, coach, and community volunteer. His many volunteer efforts include SCUBA diving for The Shedd Aquarium, Safety Director for AYSO, Den Leader for Cub Scouts and Scouting America, Preservation Commissioner for the City of Evanston and has helped pack over 1,500 meals through Feed My Starving Children.

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