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š„ Here's why AWS crashed (and how lawyers can help)

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If you take just one thing from this email...
When cloud giants like AWS go down, the whole internet feels it ā and thatās forcing businesses to rethink their contracts.
Lawyers play a key role here, helping clients tighten terms around reliability, liability, and transparency so tech businesses arenāt left powerless the next time a system fails.

EDITORāS RAMBLE š£
Some firms are scaling back DEI.
But these ones are pushing things forward.
In this yearās Social Mobility Employer Index, 7 of the top 10 spots went to law firms ā and I think that's worth highlighting.
Firms like Browne Jacobson, Linklaters and Addleshaw Goddard are:
Removing A-level requirements
Setting up dedicated social mobility teams
Making access part of long-term strategy
I think that matters.
Because without a clear path in, social mobility progress stalls.
And these firms are putting in the work ā even when some others are pulling back.
So, if youāre doing applications right now (or if youāre just interested) hereās the full list ā there are loads of law firms on it!
ā Idin

FEATURED REPORT š°
š„ Here's why AWS crashed (and how lawyers can help)

Whatās going on here?
On Monday, Amazon Web Services ā one of the worldās biggest cloud computing companies ā went down. The outage hit more than 1,000 businesses and affected millions of their customers.
What is Amazon Web Services?
Amazon Web Services (AWS) is Amazonās cloud computing business.
It lets companies store data, run websites, and use powerful computing tools online instead of buying their own servers.
Think of it like renting space and power on the internet so businesses can run apps, stream videos, or manage data quickly and securely.
For their customers, it cuts costs and improves flexibility, since they can scale up or down whenever they need.
Social media apps like Snapchat and Reddit stopped working. Banks such as Lloyds and Halifax also faced problems. Even government systems like HMRC were disrupted.
Some of Amazonās own products, like Ring doorbells and Alexa devices, were hit too.
Whatās caused the outage?
This big problem came down to something simple ā a Domain Name System (DNS) error.
What is DNS?
Well, when you type a website address into your browser, like ālittlelaw.co.ukā, your computer doesnāt understand the word ālittlelawā.
Instead, it uses an IP address, to find the website. The DNS works like a contact list. It matches names (like ālittlelaw.co.ukā) to the right number, so your computer can reach the site.
A DNS error happens when that ātranslationā fails. In this case, Amazonās DNS system went down, so usersā computers couldnāt find the websites that rely on it. The servers themselves were still working, but users couldnāt reach them.
These errors can happen for many reasons, such as maintenance work. AWS said this one happened at its data centre in Northern Virginia (which is a hub for data centres).

Amazonās data centres in Northern Virginia
š¤ Why so many data centres are in Northern Virginia
Northern Virginia has become the worldās leading region for data centres.
Why? Well, it offers cheap, reliable power, fast fibre connections, and tax incentives, which attracted major players like AWS early on.
Now, with so much infrastructure already there, new data centres keep clustering in the region.
What has this outage meant for companies?
Well, itās shown just how much the internet now depends on a few big tech firms.
Three companies control most of the cloud computing market. AWS has about 30%, Microsoft Azure has 20%, and Google Cloud has 13%.
When one of them goes down, the effect spreads fast. It can disrupt everything from social media (not so important) to online banking and government systems (both super important).
To lower that risk, some technology companies are trying ācloud diversification.ā This means spreading their data across different servers, regions, or even different providers. If one system fails, the others keep running.
But this approach isnāt cheap. Cloud companies charge not only for storing data but also for moving it between systems.
So, the more places a company spreads its data, the higher the cost.
Whatās the big picture effect?
The outage raised a wider question: who really controls the worldās digital systems? It exposed how much of the online world depends on a few American tech giants.
Governments, especially in Europe, are now worried about this over-reliance. EU leaders are set to meet tomorrow to discuss Europeās defence capabilities ā and theyāre also adding ādigital sovereigntyā as a key theme. This is the idea that Europe should build and manage its own digital systems instead of depending on foreign cloud providers.
The concern goes beyond outages. When data is stored on American servers, itās also subject to American law.
For example, the US CLOUD Act (which stands for Clarifying Lawful Overseas Use of Data) theoretically allows US authorities to access data held by American tech companies, even if that data belongs to people outside the US.
Are Amazon liable for the damage this caused?
When a companyās services go down because of an outage, it can still be responsible for the knock-on effects. This is known as downstream liability ā being on the hook for losses even when the problem started higher up the chain.
When AWS went offline, banks using its systems couldnāt serve customers. Those customers might have lost money or faced delays, but they canāt sue AWS directly ā their contract is with the bank. Instead, they could claim against the bank, which could then try to recover its own losses from AWS.
In practice, though, cloud providers like AWS protect themselves well. Their contracts usually exclude claims for indirect losses like lost profits, downtime, or damage to reputation. So, most likely, the best case outcome a customer can expect is a small service credit (basically a discount or some free usage next month).
Why should law firms care?
Law firms often help large tech clients negotiate their cloud service contracts. And after this outage, a lot of business will be reviewing the contracts they have in place.
Theyāll be asking how reliable their cloud provider really is ā and what happens if things go wrong.
Commercial lawyers could be asked to include new or tougher clauses when contracts come up for renewal, such as:
š Access to audits: Clients might ask to see proof that their providerās systems are reliable. For example, a retailer using AWS might want copies of security audit reports or the right to hire an independent expert to check data centre safety. They may even push to include a right to end the contract if the provider fails basic checks.
š¢ Disclosure obligations: Clients may push for faster notice when an outage happens, regular updates during the disruption, and a full explanation once service is restored. That transparency helps manage business risk ā and, if negligence is involved, gives the client grounds to consider legal action.
š° Higher liability caps: Many cloud contracts cap compensation at a few monthsā fees (even if the losses run into the millions). Clients may now push for higher limits or exceptions for major incidents, like when an outage leaks customer data or causes big financial harm.
Businesses will also be looking more closely at their insurance.
Law firms may need to advise how cyber policies apply ā for instance, what kinds of losses are covered, how to prove the link between an outage and financial loss, and whether damage to reputation qualifies as an insured loss.
Outages will happen again. The key is helping clients plan ahead, so theyāre ready long before the next one hits.

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āļø Slaughter and May is allegedly using the recent Mazur ruling to challenge rival firm Pogust Goodhead. The Mazur decision confirmed that non-solicitors canāt conduct litigation, even under supervision (hereās an explainer). And Slaughters is now questioning whether Pogust Goodheadās team has broken that rule in the huge BHP group litigation case. In a leaked letter, Slaughters asked the firm to prove its lawyers were properly authorised, pointing out that some didnāt have practising certificates when they worked on the case.

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STUFF THAT MIGHT HELP YOU š
š¹ļø Free application help: If you're applying to commercial law firms, check out my YouTube channel for actionable tips and an insight into the lifestyle of a commercial lawyer in London.
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