Google Cloud outage caused by ‘power event’ as problems reported at banks, Revolut, and court video cameras – business live | Business

The Google Cloud outage could result in some companies losing sales, and they might struggle to get much compensation, suggests Ryan Gracey, partner at law firm Gordons.

“Many businesses will be discovering today that their cloud contracts protect the supplier far more than they protect the customer.

“When a provider goes down, the usual remedy is a modest credit against future fees. That is small consolation set against lost revenue, frustrated customers and damage to reputation.

“Liability for those wider losses is typically capped or excluded altogether. The real exposure sits in the gap between how heavily a business depends on its provider and how little its contract actually guarantees. For banks, the stakes are higher still. Regulators expect them to keep essential services running even when a key supplier fails.

“Outsourcing a service does not mean outsourcing responsibility for it. Boards should be asking, not just what their contracts promise, but whether the business could keep going if its provider went dark for a day.”