Nemertes Impact Analysis:

Google Outage Underscores Risk of Internet Dependence

Nemertes warns of potential Internet performance issues as edge-access demand may exceed supply within the next 3 years, increasing the risks to Internet dependent organizations. Last week 14% of Google's (NASDAQ:GOOG) users lost service due to a "traffic jam" at an Asian data center. The Google outage (although not caused by edge demand issues) exemplifies the ype of operational risk enterprises relying on the Internet for key IT  services must mitigate. Best practice risk mitigation approaches include: alternate communications channels, offline use capabilities, and
meaningful SLAs.

Impacts:

Enterprises: Plan alternative last-mile communications (3G/4G, WiMax, Wi-Fi), seek full offline functionality, and where possible tie SLAs to productivity and potential revenue loss.

Vendors: SaaS and cloud providers including IBM/Lotus (NYSE:IBM), Microsoft (NASDAQ:MSFT), Salesforce.com (NYSE:CRM) and SpringCM (private) can differentiate via carrier alliances for high availability (HA) services, including the last mile.

Investors: Look at technologies enabling HA from companies such as: Cisco (NASDAQ:CSCO), Citrix (NASDAQ:CTXS), Clearwire (NASDAQ:CLWR), F5 (NASDAQ:FFIV), GoGrid (private).

Ted Ritter, Senior Research Analyst

http://www.nemertes.com/studies/internet_interrupted_why_architectural_limitations_will_fracture_net
http://www.pcworld.com/article/164946/google_outage_lesson_dont_get_stuck_in_a_cloud.html

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