The global economy has lost billions of dollars due to the fallen Facebook services

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Just a few hours of disruption to Facebook and its owned WhatsApp and Instagram have resulted in billions of dollars in losses not only to the digital empire of their owner Mark Zuckerberg, but also to indirectly related companies. In fact, the lockout demonstrated the fragility and interdependence of the digital world. It is possible that such failures will occur more and more often, and regulatory clouds may thicken over Facebook, experts fear.
The failure of Facebook, WhatsApp and Instagram attracted a lot of users to the competitors of these services, at the same time slowing down their work. Photo: REUTERS

 

WhatsApp, Instagram and Facebook went completely offline on Monday at around 11:30 AM , in New York, NY, USA time. Later, Roskomnadzor confirmed that they had recorded a large-scale failure of these services on the territory of many countries

Facebook said that the reason for the failure of the social network, as well as Instagram and WhatsApp, were errors in configuring the routers responsible for communication between data centers. User data was not affected as a result of the incident, the company assured.
In the meantime, social networks and the messenger did not work, in search of information about the incident (or for other reasons), users went to other services that experienced a significant increase in the load on their servers and also began to work intermittently. The slowdown or even temporary “unresponsiveness” of servers was felt by visitors to the sites Google, Twitter, TikTok, VKontakte, Telegram and many others. Most of them managed to restore their working capacity quite quickly – within an hour or two.
Facebook shares, despite strong growth in the first half of the year, after the crash no longer look so attractive to investors
As a result of trading on Monday, the value of Facebook shares fell by 4.89%, Twitter – by 5.79%, Apple – by 2.46%, Microsoft – by 2.97%, the NASDAQ technology index sank 2.46%. They all opened trades on Tuesday in the “green” zone, but at the time of signing the issue for publication, the losses had not yet been fully restored.
In the long term, this story will add negativity for Facebook, says analyst at BCS World of Investments Denis Buivolov. “Based on the growth in the company’s shares, which we have seen since March (+ 46%), the company’s shares no longer look so attractive for investment,” he says. If at the beginning of the year the growth of quotations was expected even in the conditions of a possible antimonopoly division of the company, now the attractiveness is much less, the analyst believes.
At the same time, Facebook shares also have long-term prospects: the monetization potential of WhatsApp has not been revealed and there is great potential in the development of virtual reality technologies, says Buivolov. “Nevertheless, we believe that it is better to postpone investing in the company until the publication of the next quarterly reports, where the impact of the change in advertising policy will be clear (in the new version of the iOS operating system, users can prohibit tracking the history of visits to sites, which depersonalizes advertising for them, therefore, return will decrease and advertisers may prefer other placement options. – “RG”) on the results of the company. In addition, in the coming days there may be additional information on the causes and consequences of yesterday’s disruption, which may only increase the uncertainty in the coming months, “- says the analyst.
There are no exact figures yet, how much a technical failure of the network cost the economy of Russia or the world, they have yet to be calculated, said Denis Bad’yanov, an analyst at Alfa Capital. “Obviously, the losses will be serious, since not only the social network and Facebook services” lay down “, but also many other resources that are not connected with them. the number of user conversations on mobile phones, the loss of domestic services alone can amount to millions. “
For the global economy, a failure could mean much greater losses, since Zuckerberg himself has drastically become impoverished by $ 6.6 billion, and companies in the technology sector have lost 5-7% of capitalization on the stock exchange (this is billions of dollars). In general, the problem shows how one emergency situation can quickly become global and affect the work of entire corporations and industries, Badianov notes.
Such failures will occur more and more often, believes Ramil Khantimirov, CEO and co-founder of StormWall. “The Internet is still based on protocols that were invented in the 1980s with no regard for security and resilience,” he says. In recent years, there have been many failures in the work of large public DNS services, CDN operators, large providers, which entailed long-term unavailability of a large part of Internet resources, he says. According to Khantimirov, the situation can get out of control even under good supervision – this is evidenced by the fact that one of the largest corporations was forced to stop its entire business for several hours.
According to German Klimenko, Chairman of the Board of the Digital Economy Development Fund, what happened could affect the prospects for the industry as a whole. “Any company is characterized not by errors and failures, this happens, but by the speed of correcting errors and their further prevention. Apparently, the course towards creating ecosystems must be adjusted and interdependence reduced,” he believes.
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To servers with a grinder: world media outlets about Facebook crash
A large-scale failure of the social network Facebook and its Instagram and WhatsApp services caused a lively discussion in the world media, calling the incident a wake-up call for a company around which there are already enough controversies.
The New York Times notes that the failure “disabled key communication platforms that are used by billions of people, demonstrating how dependent the world has become” on Facebook. “The damage turned out to be large-scale and heavy,” the newspaper said, recalling that about 3.5 billion people use the three services. The newspaper points out that accounts on this social network are also “used to log into many other applications and services, which led to a domino effect”: people lost access to accounts in stores, could not control TVs or even heating tied to online systems. ” smart home “. The failure led to losses for stores, disrupted the work of many courier services. “Technological failures are not uncommon, but shutting down so many applications at the same time is extremely unusual,” the authors summarize.
The British The Guardian notes that the disconnection was even more painful for the countries of Southeast Asia, for example – India or Myanmar, where “Facebook is almost synonymous with the Internet.”
Millions of smartphones “disconnected” from the Internet on September 30
Facebook employees also had a hard time – many of them could not contact their colleagues and even get to their offices with electronic passes due to the shutdown of the company’s internal services. Even a group of engineers sent to restart the servers had to use a grinder to get to the technical rooms due to the disabling of the electronic locks. The Guardian notes that “top Facebook executives were forced to report on the restoration work” via rival Twitter.
“I don’t think we have seen a failure of this magnitude in the largest IT company,” CNN TV channel quoted expert Doug Madori as saying. The Downdetector service, which monitors the work of major Internet resources, called the problems in the work of Facebook the largest ever recorded.
The Guardian notes that the crash has added a hefty list of Facebook problems. In recent years, the company has become a real magnet for scandals around user data leaks, the publication of disinformation and content that provokes violence and hatred. Literally on the eve of the failure, an interview on the CBS television channel of a former Facebook employee, Frances Haugen, caused a great resonance. She revealed many internal documents of the company, from which it follows that they know very well about the dangers of some of the content for the psyche of users, especially adolescents, but they ignore and even hide it all for the sake of financial gain. The company’s algorithms, she said, are set to popularize polarizing content. Haugen has already been summoned to a hearing in the US Congress and, according to Politico Europe, they really want to hear her in the European Parliament.
After interviews in the US, they again started talking about the need to regulate IT giants or even crush Facebook. “If Facebook’s monopoly manners were in control, now the continents of people dependent on Instagram and WhatsApp would have no problem,” wrote one of the leaders of the “socialist” wing of the US Democratic Party, Alessandra Ocasio-Cortez. The Guardian notes that after the failure, her associates got their hands on an additional argument.
Meanwhile, the Bloomberg agency claims that against the background of the negativity of the latter

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