insights! episode #14: Facebook and the worldwide outage | insights! with Joubin Rahimi

A small mistake, big consequences

First of all, on the technical background: the cause of the outage was a problem with a router responsible for DNS translation. DNS (Domain Name System) is basically the technology that means we can simply enter a URL like "facebook.com" instead of an IP address. Facebook chose to operate this service itself rather than relying on external providers. But what happens when this single point of failure fails? That's exactly what we experienced: the entire platform was offline, and it took hours until the problem was fixed.

The financial damage and Facebook's response

During the outage, Facebook couldn't serve any adverts — and that costs. Estimates suggest the company lost around 7 billion dollars in market value within those few hours. This shows how sensitive even the largest corporations are to technical problems. But it wasn't only the financial damage that was substantial; user and advertiser trust certainly also took a hit.

What you can learn from this: the value of a plan B

This incident is a clear sign of how important it is to have a solid plan B – whether you're a huge corporation or a small business. Here are three lessons you can draw from the Facebook outage:

1. Backup systems are indispensable: Facebook might have been able to react faster if they'd had a second DNS provider to fall back on. That's a basic security measure every company should consider. If one component fails, another should be able to take over immediately.

2. Assessing core competencies correctly: Facebook decided to manage DNS services itself. But it is not always sensible to do everything in-house. Sometimes it is better to rely on specialised service providers who are experts in their field and may be able to respond faster.

3. Diversification of channels: many organisations rely heavily on Facebook, Instagram and WhatsApp for their communication and advertising. The outage shows how risky it is to put all your eggs in one basket. It is essential to rely on several channels and platforms so as not to be dependent on a single provider.

Dependency on large platforms: dangerous bet?

Another important point we should take away from this incident is the question of dependency. Many companies use Facebook not just as a social media platform, but as a central channel for their advertising and communication. What happens when this platform suddenly goes down? The Facebook outage should be a wake-up call: diversification isn't just a nice idea, it's a must. Companies that rely solely on one platform risk massive revenue losses in the event of an outage or a ban.

Conclusion: prepare yourself for the unexpected

The Facebook outage shows how important it is to be prepared for every eventuality. Whether you implement a backup system, reduce your dependence on individual providers or rethink your core competencies – there are many ways to better prepare for the unexpected. At the end of the day, it's about minimising risks and making your business as stable as possible.

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