For: I've seen a company very nearly destroyed by not having the skills to deal with a single disk failure in raid.
Against: A Large Hosting Company we used couldn't read my simple instructions and lost a backup.
BTW read the SLAs of your provider and my guess is you'll agree with what a lawyer who worked for us said - shite. Basically, while it was down our provider wouldn't charge us for it. The end. What does yours do? If similar, what motivation have they to fix breaks? And is the provider responsible for loss of connectivity between them and you?
Put another way, who gets hurt more in downtime, the provider or you?
Some reading for me <https://journal.uptimeinstitute.com/cloud-slas-punish-not-co...>
Quick extract:
"SLA compensation doesn’t even scratch the surface of these losses. If a single virtual machine goes down for less than 7 hours, 18 minutes (99% monthly availability), AWS will pay 10% of the monthly cost of that virtual machine. Considering the price of a small instance (a ‘t4g.nano’) in the large US-East-1 region (in Northern Virginia, US) is around $3 per month, total compensation for this outage would be 30 cents.
If a virtual machine goes down for less than 36 hours (95% availability in a month), the compensation is just 30% — just under a dollar. The user only receives a full refund for the month if the resource is down for more than one day, 12 hours and 31 minutes in total."
yep, that sounds about right.
Edit for context:
"In the 2021 Uptime Institute data center survey, the average cost of respondents’ most significant recent downtime incident was $973,000. This average does not include the 2% of respondents who estimate they lost more than $40M for their most recent worst downtime incident."
For example a couple of months ago AWS had an outage that caused all of our customer facing domains to go down in us-west-2. It meant going to example.com wasn't resolving with our site due to a confirmed AWS outage.
For a few hours all of our RDS instances, EC2 instances, etc. were being charged for but providing $0 value since the entire org's sites were down. All revenue halted because the site wasn't accessible. When I contacted AWS support about the outage they mentioned we only qualified for some microscopic amount because the outage wasn't directly related to RDS, EC2 or VPC related things, etc..
One of our previous incidents happened because an employee at a large hosting company misunderstood the ticket and manually shut down our entire live server without warning
Business interruption insurance should be covering the actual downtime cost.
How very generous.
The insurance is an interesting idea, why not have MS/google/amazon roll that insurance into their offerings, I mean, it makes sense.
Their nines are not your nines.