Major Revelation: Amazon Web Services Outage Highlights UK Government’s £1.7 Billion Reliance on Tech Giant

Amazon’s CEO Andy Jassy wore a broad smile while meeting Keir Starmer in the gardens of Downing Street to announce a £40bn investment in the UK this past June. Starmer shared his enthusiasm, stating, “equally passionate”. He remarked, “This transaction demonstrates that our transformation strategy to attract investment, stimulate growth, and enhance people’s financial well-being is succeeding.”

However, just four months later, the company faced a massive global outage on Monday that halted thousands of businesses and underscored its reliance on Amazon Web Services (AWS), the cloud computing platform utilized by the British government.

Data gathered for the Guardian indicates that the UK government is increasingly dependent on the services of U.S. tech giants. These companies have come under fire from trade unions and politicians for their working conditions in logistics and online retail.

Since 2016, AWS has secured 189 contracts with the UK government valued at £1.7bn and has billed approximately £1.4bn during this timeframe, according to data from public procurement intelligence firm Tassel.

The research group reported: “Currently, 35 public sector authorities utilize AWS services across 41 contracts totaling £1.1bn. The primary ministries involved include the Home Office, DWP, HMRC, the Ministry of Justice, Cabinet Office, and Defra.

Screenshot of the out-of-service HMRC website on Monday, October 20th. Photo: HMRC.gov.uk/PA

Tim Wright, a technology partner at law firm Floodgate, noted that the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have consistently warned about the risks associated with concentrating cloud services for regulated enterprises.

“Recent efforts by the Treasury, the PRA, and the FCA to impose direct oversight on ‘significant third parties’ aim to mitigate the risk of outages like those faced by AWS,” he said. “However, until we see substantial diversification and the establishment of sovereign clouds, the UK government’s approach contradicts the resilience principles that regulators advocate for.”

The House of Commons Treasury Committee has reached out to Chancellor of the Exchequer Lucy Rigby to inquire why Amazon wasn’t classified as a “significant third party” within the UK financial services sector, a designation that would have subjected the tech giant to regulatory scrutiny.

Skip past newsletter promotions

Committee Chair Meg Hillier noted that Amazon recently informed the committee that its financial services clients rely on AWS for “resilience” and that AWS offers “layers of protection.”

This week’s outage impacted over 2,000 businesses around the globe, leading to 8.1 million reports of issues, with 1.9 million in the U.S., 1 million in the UK, and 418,000 in Australia, according to internet outage tracker Downdetector.

Only HMRC confirmed it was affected by the outage, stating customers were “experiencing difficulties accessing our online services” and recommended they call back later due to busy phone lines.

While many websites restored their services after a few hours, some continued to experience problems throughout the day. By Monday evening, Amazon announced that all cloud services had “returned to normal operations.”

Trade unions have long questioned whether Amazon should be excluded from government contracts because of its reputation for subpar working conditions in its large warehouses.

Andy Prendergast, national secretary of the GMB union, stated: “Amazon has a dismal record regarding fair treatment of workers. Shocking conditions in their warehouses have resulted in emergency ambulance calls, with employees claiming they are treated like robots, forced to work until exhaustion, all while being compensated with poverty wages until they strike for six months.”

“In this context, wasting nearly £2 billion of public funds is deplorable.”

AWS has not provided a comment. A spokesperson from Amazon’s fulfillment centers stated that the “vast majority” of ambulance calls at their facilities are not “work-related.”

Source: www.theguardian.com

Power Outage Sparks Confusion and Reflection on Digital Reliance in Spain

“It was utter chaos,” remarked Inigo, a physician at a hospital in northern Spain.

Since losing power on Monday afternoon, he noted that emergency generators were reserved for critical areas. This meant a lack of access to patient records, disrupted phone connectivity and email, and colleagues unable to carry out their responsibilities, leading to severe communication breakdowns.

Inigo explained that the hospital’s backup generator was intended to keep surgeries ongoing. However, operations had to be cancelled due to the challenges of safely managing orders and moving patients. “This incident made us realize just how reliant we are on technology,” he said.

On that Monday, about 55 million individuals found themselves thrust back into a pre-electric era as significant blackouts swept through Spain, Portugal, and southern France, marking one of the worst outages in recent European memory. Mobile signals vanished, traffic lights failed, supermarkets fell into darkness, digital payment systems froze, and many found themselves stranded away from home as a prolonged power outage occurred.

Last month, EU residents were advised to prepare with 72 hours’ worth of essential supplies, but this blackout underscored the susceptibility many have to widespread disruptions.

After service was restored, the Guardian spoke with individuals reflecting on the incident and its implications for future preparedness and resilience.

For Inigo, despite the disruption feeling like a “total disaster” at the moment, he appreciated in retrospect that there were no physical injuries. “Moving forward, we should invest in more backup generators and fuel to ensure smoother operations,” he suggested.

Beibei in Barcelona. Photo: Beibei/Guardian Community

Initially, Beibei, 41, in Barcelona, found the power cut to be “very thrilling.” However, concern set in when a neighbor knocked on her door with her four-month-old baby, saying, “I know it’s affecting all of Europe.” “I could see the anxiety on her face,” Beibei shared.

She needed to pick up her six-year-old son from school but had to first find food. “In the dimly lit shop, the cashier was turning away customers who couldn’t pay with cash,” explained Beibei, who is a climate activist and has lived in Spain since the pandemic hit. She collected some essentials but anxiously noticed other shoppers with full carts, fearing she wouldn’t have enough.

On her second trip with her neighbor, she found their nearest supermarket had stopped admitting customers. At another store, Beibei faced an alarming situation. “The cashier unloaded items from my basket when I realized I didn’t have enough cash. Just as the last light went out, she announced, ‘I can’t accept any payments now.’

After reuniting with her sons, Beibei expressed a newfound appreciation for everyday conveniences. “I’ve ensured I have cash ready for next time,” she mentioned.

“This experience has shifted my perspective on what truly matters in life—the nourishment we often take for granted, the presence of loved ones, and the ease of cooking and cleaning with modern appliances. I will never overlook these miracles again.”

Skip past newsletter promotions

The outage also led to passengers being trapped in underground subway tunnels and trains, compelling many to walk long distances and remain stationary for hours.

Doug Crave, 60, from Brighton, boarded a train in Madrid at 9:57 a.m. to visit a friend in Barcelona. However, before reaching his destination, the train experienced a shudder. With no mobile signal, the doors remained sealed for nearly two hours until authorities finally arrived to open them and distribute bottled water.

Police officers distributing water to passengers caught inside a high-speed train. Photo: Doug Craib/Guardian Community

He recounted that a woman experienced a panic attack lasting about six hours. “It felt stifling and humid in the carriage,” he said. Eventually, police led passengers off the train using flashlights at night, escorting them to Barcelona where they boarded a bus that arrived around midnight.

Passengers disembarking from the train hours later, heading to the bus for transport to Barcelona. Photo: Doug Craib/Guardian Community

Crave noted that the ordeal prompted him to reconsider the increasing reliance on digital transactions, as many were unable to buy food or water during the outage.

“In every conversation I had in Barcelona regarding hotels, taxis, and restaurants, there was a common concern about the increasing trend of going cashless,” he reported. “All payment systems failed, leaving cash as the only option, yet most people were unprepared, and ATMs were non-functional.”

Katarina, a 24-year-old engineer from Porto, was in her office when the power went out. Upon returning home, she filled containers with water in case her pump stopped working. She tuned into updates via a battery-operated radio she bought after the EU’s emergency advice last month.

Katarina in Porto stayed updated on the news using a battery-operated radio and prepared water supplies. Photo: Katarina/Guardian Community

“Nobody had any idea of what to do or where to go or how long it would take,” she recalled.

“On one hand, there’s a lot of discourse about how technology has disconnected us, yet yesterday proved that we remain human. People helped one another, stepped outside, and acted as a community once more.”

With her power still out by 5 p.m. on Monday, Katarina took a stroll with her boyfriend. She observed cars halted due to the absence of traffic lights, orderly bus lines, gardens filled with readers, athletes, and families barbecuing, as well as residents chatting with passersby from their doorways.

“It was quite remarkable,” she said. “It really restored my faith in humanity to witness how quickly people banded together and supported each other despite the chaos around us.”

Source: www.theguardian.com

Apple’s goal: Sourcing all US iPhones from India and decreasing reliance on China

It has been reported that Apple is planning to shift its iPhone assembly operations to India for the US market in order to reduce reliance on Chinese manufacturing bases amidst the trade war initiated by Donald Trump. The tech giant, with a value of $3 trillion (£2.3 trillion), aims to make this transition soon, as mentioned in the Financial Times article next year.

Apple has been affected by Trump’s tariff policies, resulting in iPhones being subjected to heavy import taxes when entering the US. Despite this, the White House decided to exclude smartphones from the highest tariffs imposed on Chinese products, providing some relief to Apple.

The intricate manufacturing process of iPhones involves sourcing over 1,000 components from various parts of the world, with an estimated 90% of iPhones currently being assembled domestically. By the end of 2026, Apple plans to have over 60 million iPhones sold in the US assembled in India.

In an effort to offset the impact of tariffs, Apple’s leading Indian suppliers have increased production in India and have shipped a significant number of phones to the US. Apple has also chartered freight flights to ensure an adequate stock in key markets.

Despite discussions about moving iPhone production to the US, analysts do not foresee this happening in the near future. The costs associated with manufacturing iPhones in the US are expected to be high, making it financially challenging for Apple to shift production entirely.

Skip past newsletter promotions

Source: www.theguardian.com