How smart industry is escaping the 'single cloud of failure'

More companies are pulling critical, carefully selected workloads back into local facilities or sovereign data centers.
Dec. 17, 2025
5 min read

What you’ll learn:

  • It’s not about rejecting the cloud, not at all. It’s about physics, cost, and control.
  • The outages of 2025 didn’t mark the end of the cloud. They exposed the risk of a “single cloud of failure.”

The internet was built to survive a nuclear strike. Its designers assumed entire regions could vanish, so they created a decentralized system with no real center. Lose one piece and traffic simply routes around the damage.

Aviation took the same lesson even further. Airbus fly-by-wire systems, for example, hit aerospace-grade reliability by running multiple flight control primary computers and secondary computers in parallel, each tied to its own sensors.

See also: The strategic importance of industrial data fabrics

Every channel calculates its own view of the world. They cross-check one another every cycle. When one disagrees, the others outvote it. Even a corrupted data stream or a dead computer doesn’t push the aircraft out of control.

To avoid shared flaws, Airbus splits hardware families and codebases so that a defect in one stack doesn’t echo in the other. This diversity keeps Normal Law, Alternate Law, and Direct Law transitions stable as faults stack up.

Cloud platforms never built that degree of separation. Spread workloads across availability zones, and you’re still relying on a shared control plane, the same hypervisor, the same internal services, and the same operational machinery.

Those layers form correlated failure paths that aerospace systems work hard to avoid. The closest thing to true independence in the cloud world is running across different providers entirely, where internal stacks don’t overlap.

See also: 75% see AI as margin driver, but only 21% report their data is up to the task

Somewhere along the way, the industry traded resilience for convenience. By late 2025 the world was leaning on a handful of massive cloud and Software-as-a-Service (SaaS) platforms.

They were internally redundant, but their internal guts were completely opaque, and far more intertwined than anyone wanted to admit.

When something broke, we waited for a carefully worded apology explaining why an outage that should never happen did in fact happen.

Smart industry isn’t abandoning the cloud; it’s becoming more self-sufficient. More autonomous.

Then came the autumn run of outages. A single Amazon Web Services region stumbled and apps, payment systems, and logistics pipelines blinked out. A misfired Azure config update froze airports and banks. A Cloudflare glitch briefly wiped out a chunk of the public web. None of this was caused by disasters or attacks. Just small mistakes with global blast radius.

See also: 75% see AI as margin driver, but only 21% report their data is up to the task

For the industrial world, the message landed hard. Industry 4.0 had tied machines, sensors, planning tools, and analytics directly to cloud services. When connectivity died, dashboards froze and processes stalled.

In some factories, even authentication needed a live connection, so entire systems refused to start. Operators were left to manage complex situations with limited visibility and rising pressure.

Downtime burns money faster than any cloud invoice. Automotive plants lose millions per hour. Smaller manufacturers take hits they may never recover from. Once production stops, it doesn’t bounce back cleanly.

Materials spoil, safety routines trigger, and supply chains drift out of alignment. Cloud had been treated like a utility, but the cost of that assumption suddenly became obvious.

Move toward small, private clouds

These shocks sped up a shift already underway. The idea that everything should live in the public cloud is fading. More companies are pulling critical, carefully selected workloads back into local facilities or sovereign data centers.

The outages of 2025 didn’t mark the end of the cloud. They exposed the risk of a 'single cloud of failure.'

It’s not about rejecting the cloud, not at all. It’s about physics, cost, and control. Shipping petabytes of sensor data across the world isn’t always sensible. Paying cloud rates for constant, predictable workloads rarely pencils out. And depending on someone else’s uptime for safety-critical operations is no longer acceptable.

See also: What industrial and health care breaches teach us about cyber resilience

The next few years will lean toward hybrid designs where real-time logic, AI inference, and autonomy sit at the edge, while long-horizon analytics and training stay in the cloud.

Governments are pushing digital sovereignty, fueling interest in small private clouds inside factories or nearby data centers. These setups keep familiar cloud-style operations while avoiding the fragility of distant dependencies.

To support this, factories are adopting hybrid cloud software where the cloud remains the system of record, but local caching appliances guarantee a local-first experience.

Apps keep running through full disconnection and sync later without conflict. Combined with event-driven designs and local brokers, telemetry can flow to multiple clouds at once without tying operations to a single provider.

The future belongs to those who stop assuming uptime comes from one place, spread resilience across every layer.

This shift requires a new mindset. Teams are beginning to assume the network will fail and design accordingly. Local authentication replaces fragile remote checks.

Internal registries stand in for public package sources. Critical data fans out to several clouds at once. And cloud cost models now include the price of correlated downtime.

See also: Taming the data beast is the first step toward smart operations that cannot be skipped

The outages of 2025 didn’t mark the end of the cloud. They exposed the risk of a “single cloud of failure.” Smart industry isn’t abandoning the cloud; it’s becoming more self-sufficient. More autonomous.

The next wave of factories uses cloud services, but with replication and failovers designed for survival even when a provider stumbles.

What comes next feels like a return to the internet’s original instincts: a mesh of local intelligence, distributed data, and systems built to keep working when pieces fall apart.

We replaced the old server closet with the hyperscale cloud and created a new kind of single point of failure. Now it’s time to rethink that choice and build something sturdier.

The future belongs to those who stop assuming uptime comes from one place, spread resilience across every layer, and refuse to build their business on a single cloud of failure.

About the Author

Aron Brand

Aron Brand

Aron Brand, chief technology officer at CTERA Networks, has more than 22 years of experience in designing and implementing distributed software systems. Prior to joining the founding team of CTERA, he was chief architect of SofaWare Technologies, where he led the design of security software and appliances for the service provider and enterprise markets.

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