I lost 6 billion dollars today. Are we ready to discuss continuity for a post-FB/IG/WhatsApp world?

Today’s outage cost the Facebook empire about $164,000 a minute in revenue, while stock’s decline wiped away more than $40 billion in market cap and cost Mark Zuckerberg roughly $6 billion personally.

  • Based on Facebook’s 2020 revenue of $85.97 billion, Monday’s outage cost the company an average of $163,565 in revenue every minute, roughly $60 million based on more than six hours of downtime.

  • That lost revenue is chump change compared with how much market capitalization the company lost on Monday. Facebook shares fell 4.9% Monday, which translates into $47.3 billion in lost market cap.

  • Founder and Chief Executive Mark Zuckerberg, who owns a 14% stake in the company, lost about $6 billion on Monday alone, dropping him from Forbes’ fifth richest person to its sixth, just below Oracle Corp. ORCL, -0.53% founder Larry Ellison.

  • The $1 trillion club may revoke Facebook’s membership after Monday’s decline. The company, which initially joined the $1 trillion club along with Apple Inc. AAPL, -2.46%, Microsoft Corp. MSFT, -2.07%, Amazon.com Inc. AMZN, -2.85%, and Alphabet Inc. GOOGL, -2.11% GOOG, -1.98%, after winning a court decision against the Federal Trade Commission in June, is now more than $80 billion below the threshold. Facebook dipped under a $1 trillion valuation on Sept. 22, and after Monday’s decline, its valuation stands at $919.79 billion.

In light of this outage, is it time to consider Facebook as a company whose best days are behind it, and wonder what can businesses do to continue business digitally now?

This article reviews the latest outages for Facebook, Instagram, and WhatsApp and explores how a business should consider diversifying their social media presence as a method to continue marketing, generating income, outreach, branding and/or other core business functions.

Now we have a problem.

So, what happened?

  • On the technical side of things: The DNS records that tell systems how to find http://Facebook.com or http://Instagram.com got withdrawn this morning from the global routing tables. In addition, Facebook/Instagram/WhatsApp run on the same IT infrastructure – which is a problem in its own when thinking of application recovery from a single source.

  • On the political side of things Former Facebook data scientist Frances Haugen, who alleges that the social-media giant has been deceiving investors about how it has been dealing with hate speech and misinformation on its platform. Is there a connection to the technical outage? We don’t know that for sure until more details become available in a few days on root cause. However, if this was an intentional disruption caused by a motivated 3rd party, this raises questions on the cybersecurity resiliency of Facebook and its affiliated applications, which makes this a concern for the platform’s users.

Who is impacted?

  • Small businesses that depend on content posting to generate revenue and/or remind their followers of their delicious food with a post at 4pm and hopefully an order at 6pm.

  • Any business that is dependent on posting to remind their followers of who they are, what they do, and what problem they fix. These business’ ability to outreach has been impacted.


What is next for businesses affected?

  • Explore other social media options to engage with your audience/customers/community such as Reddit, TikTok, or Pinterest.

  • Create a plan of action on how you could diversify your social media presence to different platforms.

  • Collect emails from your costumers by any means necessary, including sending them emails during disruptions. Sending an email to your committed customers about the outage acts as a friendly reminder that you still exist.

  • Update banners on your website to indicate outages with service providers. Something as simple as “We are experiencing technical difficulties due to x”.

Resources:

https://www.marketwatch.com/story/facebook-outage-by-the-numbers-largest-outage-ever-tracked-could-cost-millions-11633387093?mod=home-page

https://www.nytimes.com/2021/10/04/technology/facebook-files.html?smid=li-share

https://www.marketwatch.com/story/facebooks-very-very-bad-day-services-go-down-as-stock-plunges-in-wake-of-whistleblower-revelations-11633365581?mod=home-page