Facebook and Amazon Are Too Big to Fail, and Pintrest, Netflix Are Suffering

The news that Instagram, and other sites such as Pinterest and Netflix, crashed after the Amazon EC2 cloud that hosts these and other services failed due to severe weather, left Instagrammers around the world sighting in dissapointment as another episode produced – albeit involuntarily – by another tech giant threatened with tainting their cool mobile artistic community.

Instagram, which was recently acquired by another tech giant – Facebook – for $1 billion was at the mercy of Amazon’s cloud service. Isn’t Facebook supposed to host or at least provide a more secure server for the company that it spent so much money in?

The episode highlights an unsettling trend in a tech sector that is becoming increasingly divided, with titans such as Facebook and Amazon – the tech equivalents of the “too big to fail” banks – on one side; and a string of innovative but smaller tech start ups (Instagram, Pinterest) that are trying to grow in a highly competitive tech sector on the other. 

Instagram woes started with the “Insta-Backlash” generated by the announcement that Facebook would by the young company for $1 billion, as the social network prepared for its IPO. This prompted Instagrammers to protest and threaten with cancelling their accounts as many of them were former Facebook users frustrated with privacy issues and invasive advertising. Furthermore, Facebook announceded soon after that it would launch its own photo-filtering standalone application -- Camera. 

Then, young Instagram a friendly and creative app was in risk of going down with the whole tech industry, when it seemed Facebook's volatile IPO would burst thech bubble 2.0. And now, that the social network seems to be in its road to recovery, Amazon cloud's failure interrupted Instagram's service upseting its 30 million users.

How much do you trust the information in this article?

MORE FROM

‘Insecure’ season two is television for us, by us — and it’s even better than before

Creator Issa Rae shouldn't sweat the Emmy snub — her connection with her core audience is what really makes this series shine.

We talked to military experts about who will win the Iron Throne

Does Dany have a chance? Historians, tacticians and scholars weigh in on the ultimate outcome of 'Game of Thrones.'

‘Game of Thrones’ Season 7, Episode 2 Trailer: New alliances may form in “Stormborn”

Jon Snow and Daenerys Targaryen may have an unexpected intermediary.

Tyler, the Creator is still a “walking paradox” on the rumor-baiting ‘Flower Boy’

Is he queer? Maybe. Does he know how to use the speculation to further his art? Definitely.

Note to Ryan Murphy: ‘American Horror Story’ reveals don’t need to be a scavenger hunt

The title and premiere date of the seventh season of 'American Horror Story' were revealed Thursday.

‘Wet Hot American Summer: Ten Years Later’ proves sometimes it’s OK to skip the reunion

If you're looking to trim down your Netflix consumption, start by avoiding this pointless sequel series.

‘Insecure’ season two is television for us, by us — and it’s even better than before

Creator Issa Rae shouldn't sweat the Emmy snub — her connection with her core audience is what really makes this series shine.

We talked to military experts about who will win the Iron Throne

Does Dany have a chance? Historians, tacticians and scholars weigh in on the ultimate outcome of 'Game of Thrones.'

‘Game of Thrones’ Season 7, Episode 2 Trailer: New alliances may form in “Stormborn”

Jon Snow and Daenerys Targaryen may have an unexpected intermediary.

Tyler, the Creator is still a “walking paradox” on the rumor-baiting ‘Flower Boy’

Is he queer? Maybe. Does he know how to use the speculation to further his art? Definitely.

Note to Ryan Murphy: ‘American Horror Story’ reveals don’t need to be a scavenger hunt

The title and premiere date of the seventh season of 'American Horror Story' were revealed Thursday.

‘Wet Hot American Summer: Ten Years Later’ proves sometimes it’s OK to skip the reunion

If you're looking to trim down your Netflix consumption, start by avoiding this pointless sequel series.