The AWS Outage Impacted A Lot More Than Amazon

A massive outage at Amazon.com, Inc.'s AMZN AWS segment on Tuesday knocked down countless websites and impacted many businesses. Amazon's stock was relatively unaffected and ended Tuesday's trading session lower by around 0.42 percent and the stock regained these losses early Wednesday morning.

Trip Chowdhry of Global Equities Research commented in a report and explored the impact of the five-hour outage.p

Related Article: The Way Amazon Handled Its AWS System Outage: 'Bad Business'

The outage will have around a 2 percent negative impact on Amazon's first quarter revenue, but perhaps more concerning is the fact the outage occurred at the worst possible time.

The analyst noted Amazon's competitors are "over-amplifying" the problems of Amazon's AWS as "single point of failure and you go bust." For example, Oracle Corporation ORCL is perhaps being the most aggressive and promoting the fact that its Bare-metal cloud does not suffer from a single point of failure.

The list of companies impacted by the outage is indeed vast and even industry giants like Apple Inc. AAPL weren't immune. Apple's App Store, music, TV, iBook store, iCloud, iTunes, Mac App store and Apple Photos were all "dead" on Tuesday.

Others impacted include Twilio Inc TWLO, Twitter Inc's TWTR Periscope and StockTwits.

Bottom line, Amazon's woes has given a lot of sales teams at competing firms to pitch their services to Amazon's customers to dissuade them from continuing with AWS.