Shares in Fastly, the internet infrastructure company whose bungalow killed thousands of popular websites around the world on Tuesday, rose 11% after the outage.
Quickly, a content delivery technology provider that is destined to accelerate online transmission and upload speeds had added more than $ 600 million to its market capitalization since the end of trading in New York Tuesday. , valuing the little-known company at $ 6.5 billion.
The San Francisco-based Fastly apologized for a “discovered software bug” that caused a interruption which affects 85 percent of its network. The bug was triggered when a single Fastly client made an apparently routine change as their systems were installed, Fastly said.
“Although there were specific conditions that triggered this disruption, we should have anticipated it,” said Nick Rockwell, Fastly’s senior vice president in engineering and infrastructure.
Although its shares initially fell when news of the widespread disruption of media companies, streaming services and e-commerce platforms, the strong recovery suggests that investors may have been impressed by the speed with which which Fastly solved the problem.
He quickly said in a blog post published late Tuesday that 95 percent of his network was “operating as normal” within 49 minutes of discovering the problem.
“We detected the interruption in a minute, then identified and isolated the cause, and disabled the configuration,” Rockwell said. “This disruption has been wide and severe, and we are truly sorry for the impact on our customers and all those who rely on them.”
The strong response from investors may also reflect the number of big-name companies that the outage has revealed such as Fastly customers, including Amazon’s Twitch, Spotify, Stripe and Shopify, as well as media companies such as BBC, The New York Times, CNN and the Financial Times.
Content delivery networks are being used by companies to store data on dozens of server farms around the world, reducing companies ’bandwidth requirements and speeding up flows and downloads for consumers.
Fastly was founded a decade ago and the company has more than doubled in value since it went public in May 2019.
Its revenues grew 45 percent last year to $ 291 million, with more than 2,000 corporate customers, but its net loss has widened 86 percent to $ 95.9 million in 2020.
Investors ’positive response to Tuesday’s events could decline if Fastly is forced to offer expensive compensation to most of its customers. Subscribers to their “Gold” support plan are guaranteed 100 percent uptime.
“Any failure of the service level could harm our business,” Fastly said in a recent regulatory presentation describing the potential risks to its business, which also indicated a previous “platform outage” in January 2021.
“If we are unable to meet stated service level commitments, including failure to meet uptime and delivery times in our agreements with customers, we are in the past and may in the future be contractually obligated to provide customers affected service credits that could significantly influence our revenues, ”Fastly said in a presentation last month.
After similar problems affecting Amazon Web Services and Cloudflare dropped a large number of websites last year, Tuesday’s outage also highlighted how many of the world’s most popular online services are down. they rely on a relatively small number of cloud computing platforms.
“The Internet infrastructure is an incredibly complex network of dependencies, and trust doesn’t happen by accident,” said Andy Champagne, vice president of Akamai, one of Fastly’s rivals. “It takes a combination of technology and people working with rigorous precision to ensure it works like a well-oiled machine.”