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You can't deny that the current issue is certainly not something you would expect of a serious offering

Every major cloud offering on the market has had outages that were traced down to silly issues. I'm not sure if your dislike is targeted at just Azure, or the cloud in general.

I'm always apprehensive of outsourcing critical business infrastructure without a failover plan, and I find the excuse "amazon is down" or "azure is down" unsatisfying (especially when its a service customers pay for)

Having a "hot spare" cloud provider is going to be so complex and expensive that it probably would kill the idea of using Azure, Amazon, etc for most companies.

Unless you run your own DC, you are still outsourcing part of your infrastructure to a colo facility, which will not be immune to power and connectivity issues, and of course, issues with your setup.

Saying "<cloud provider> is down" certainly isn't very comforting, but if the aggregate downtime is less than if you were running your own setup, I'm not sure that being powerless in the event of downtime is reason enough to not use them.

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