Microsoft Azure suffered a major global outage on 29th October 2025, disrupting services across industries and platforms

Microsoft outage

Microsoft Azure experienced a widespread outage on 29th October, beginning around 16:00 UTC, which affected thousands of users and businesses globally.

The disruption stemmed from issues with Azure Front Door, Microsoft’s content delivery network, and cascaded into failures across Microsoft 365, Xbox, Minecraft, and numerous third-party services reliant on Azure infrastructure.

Major retailers such as Costco and Starbucks, as well as airlines including Alaska and Hawaiian, reported system failures that hindered customer access and internal operations.

Users struggled with authentication, hosting, and server connectivity, with DownDetector logging a surge in complaints from 15:45 GMT onwards.

Microsoft acknowledged the problem on its Azure status page, attributing the outage to a suspected configuration change.

Full service restoration was achieved by about 23:20 UTC, though the timing coincided awkwardly with Microsoft’s Q1 FY26 earnings report, where Azure was reportedly highlighted as its fastest-growing segment.

The incident underscores the critical dependence on cloud infrastructure and raises questions about resilience and contingency planning.

As businesses increasingly migrate to cloud platforms, the ripple effects of such outages become more pronounced, impacting not just productivity, but public trust in digital reliability.

AWS has also experienced outage issues recently.

AWS Outage Reveals Fragility of Global Cloud Dependency

Amazon services go dark

It was just one week ago on Monday 20th October 2025, Amazon Web Services (AWS) experienced a major outage that rippled across the digital world, disrupting operations for millions of users and businesses.

The incident, which originated in AWS’s US-East-1 region, was reportedly traced to DNS resolution failures affecting DynamoDB—one of AWS’s core database services.

This technical fault triggered cascading issues across EC2, network load balancers, and other critical infrastructure, leaving many services offline for hours.

The impact was immediate and widespread. Major consumer platforms such as Snapchat, Reddit, Disney+, Canva, and Ring doorbells went dark.

Financial services including Venmo and Robinhood faltered, while airline customers at United and Delta struggled to access bookings. Even British government portals like Gov.uk and HMRC were affected, underscoring the global reach of AWS’s infrastructure.

World leader

AWS is the world’s leading cloud provider, commanding roughly one-third of the global market—well ahead of Microsoft Azure and Google Cloud.

Millions of companies, from startups to multinational corporations, rely on AWS for everything from data storage and virtual servers to machine learning and content delivery.

Its services underpin critical operations in healthcare, education, retail, logistics, and media. When AWS stumbles, the internet itself feels the tremor.

20 Prominent Companies Affected by the AWS Outage (20th Oct 2025)

SectorCompany NameImpact Summary
E-commerceAmazonInternal systems and Seller Central offline
Social MediaSnapchatApp outages and delays
StreamingDisney+Service interruptions
NewsRedditPartial outages, scaling issues
Design ToolsCanvaHigh error rates, reduced functionality
Smart HomeRingDevice connectivity issues
FinanceVenmoTransaction delays
FinanceRobinhoodTrading disruptions
AirlinesUnited AirlinesBooking and check-in issues
AirlinesDelta AirlinesReservation access problems
TelecomT-MobileIndirect service disruptions
GovernmentGov.ukPortal access issues
GovernmentHMRCService delays
BankingLloyds BankOnline banking affected
ProductivityZoomMeeting access issues
ProductivitySlackMessaging delays
EducationCanvasAssignment submissions disrupted
CryptoCoinbaseUser access failures
GamingRobloxServer outages
GamingFortniteGameplay interruptions

This outage wasn’t the result of a cyberattack, but rather a technical fault in one of Amazon’s main data centres. Yet the consequences were no less severe.

Amazon’s own operations were disrupted, with warehouse workers unable to access internal systems and third-party sellers locked out of Seller Central.

Canva reported ‘significantly increased error rates’. while Coinbase and Roblox cited cloud-related failures.

The incident serves as a stark reminder of the risks inherent in centralised cloud infrastructure. As digital life becomes increasingly dependent on a handful of providers, the potential for systemic disruption grows.

A single point of failure can cascade across industries, affecting everything from classroom assignments to emergency services.

AWS has since restored normal operations and promised a detailed post-event summary. But for many, the outage has reignited questions about resilience, redundancy, and the wisdom of placing so much trust in a single cloud giant.

In the age of digital interdependence, even a brief lapse can feel like a global blackout.

What is Neocloud?

Neocloud

In tech terms, a neocloud is a new breed of cloud infrastructure purpose-built for AI and high-performance computing (HPC).

Unlike traditional hyperscale cloud providers (like AWS or Azure), neoclouds focus on delivering raw GPU power, low-latency performance, and specialised environments for compute-intensive workloads.

🧠 Key Features of Neoclouds

  • GPU-as-a-Service (GPUaaS): Optimised for training and running large AI models.
  • AI-native architecture: Designed specifically for machine learning, deep learning, and real-time inference.
  • Edge-ready: Supports distributed deployments closer to users for faster response times.
  • Transparent pricing: Often more cost-efficient than hyperscalers for AI workloads.
  • Bare-metal access: Minimal virtualisation for maximum performance.

🏗️ How They Differ from Traditional Clouds

FeatureNeocloudsHyperscale Clouds
FocusAI & HPC workloadsGeneral-purpose services
HardwareGPU-centric, high-density clustersMixed CPU/GPU, broad service range
FlexibilityAgile, workload-specificBroad but less specialised
LatencyUltra-low, edge-optimizedHigher, centralized infrastructure
PricingUsage-based, transparentOften complex, with hidden costs

🚀 Who Uses Neoclouds?

  • AI startups building chatbots, LLMs, or recommendation engines
  • Research labs running simulations or genomics
  • Media studios doing real-time rendering or VFX
  • Enterprises deploying private AI models or edge computing

Think of neoclouds as specialist GPU clouds—like a high-performance race car compared to a family SUV.

Both get you places, but one’s built for speed, precision, and specialised terrain.

Microsoft shares drop on cloud miss as Azure revenue disappoints

In the cloud

Microsoft reported better-than-expected earnings and revenue for Q4

In extended trading on 30th July 2024, the stock experienced a quick decline as attention was drawn to the less-than-expected Azure revenue, despite management’s forecast for growth in the upcoming quarters.

The company’s total revenue saw a 15% increase compared to the previous year.

Despite surpassing earnings and revenue expectations, Microsoft’s shares dropped by up to 7% in extended trading on Tuesday, with investors concentrating on the underwhelming cloud revenue. However, executives offered a positive outlook, anticipating an acceleration in cloud growth during the first half of 2025.

Microsoft one day chart 30th July 2024

Microsoft one day chart 30th July 2024

Microsoft’s cloud division holds significant interest for investors, as it competes with Amazon Web Services (AWS) and Google in the artificial intelligence (AI) work arena. These three tech giants are pouring substantial resources into enhancing AI capabilities, aiming to attract both startups and established companies as generative AI technology swiftly progresses.

For Amazon, AWS has served as a vital profit centre for the past ten years.

Microsoft closes at all-time high

Microsoft closes at all-time high

Microsoft ended Tuesday’s trading session at a record high of $360.53, following fresh optimism about growth from a key partner in artificial intelligence (AI). The increase gives the company a market value of about $2.68 trillion.

At a tech event on Monday 6th November 2023, Microsoft’s AI partner, OpenAI, announced a batch of updates, including price cuts and plans to allow people to make custom versions of the ChatGPT chatbot.

Microsoft CEO Satya Nadella attended and emphasized that developers building applications with OpenAI’s tools could get to market quickly by deploying their software on Microsoft’s Azure cloud infrastructure.

Microsoft has invested a reported $13 billion in OpenAI, which has granted Microsoft an exclusive licence on OpenAI’s GPT-4 large language model that can generate human-like prose in response to a few words of text.

Chatbot
Fictitious AI robot learning from a digital human online

Last week, Microsoft announced the release of an AI add-on for its Office productivity app subscriptions and an assistant in Windows 11, both of which rely on OpenAI models.

The future is looking bright for Microsoft right now.