AWS gets hacked, Microsoft vs AWS and Digital Realty buys Interxion - The Data Podcast

The episode kicks off with a discussion around the recent DDoS attack on AWS, a critical cloud hosting provider for many well-known companies and websites. Craig and Seb delve into the details, noting AWS's response to the attack, the investigation into DNS resolution errors, and the protective measures in place. While the basic version of AWS can defend against 96% of common cyber attacks, the hosts emphasize the importance of higher security measures for crucial services. They cover the impact of the attack, stating that many applications and websites relying on AWS experienced downtime for about eight hours.

Next, Craig and Seb discuss Microsoft's recent win over AWS for a $10 billion Pentagon cloud computing contract. The conversation highlights how this has boosted Microsoft's stock and reflects a shift in cloud service preferences in the military sector. Despite AWS's dominance, the hosts comment on Microsoft's growth and innovations, suggesting the potential for increased competition that could benefit consumers. They delve into the implications of this contract for future government contracts and the ongoing rivalry between the two tech giants.

The final segment centers around Digital Realty's significant acquisition of Interxion for $8.4 billion, which raises eyebrows about market monopolization. Craig expresses concerns regarding the company's strategy of buying competition rather than fostering innovation. The discussion reflects on the broader market implications of such acquisitions, including reduced competition, which could stifle innovation. However, they acknowledge the potential benefits, particularly in terms of increased capacity and presence in Europe for Digital Realty. Seb emphasizes the need for balancing growth through acquisition with maintaining healthy market competition.