Cloudflare outage highlights enterprise infrastructure dependence

The latest Cloudflare outage shows that a dangerously low number of infrastructure providers are depended on for enterprise services. The disruption forces a difficult conversation for leaders: efficiency has been prioritised over structural integrity, and the bill is coming due.

Businesses have long bet on the stability of major cloud providers, often assuming that scale equals uptime. That assumption is crumbling. Tim Wright, Technology Partner at Fladgate, argues that organisations relying on “always-on” resilience are now confronting the reality of “single points of failure.”

“Cloudflare’s latest outage is another reminder that much of the internet runs through just a few hands,” Wright says.

The risk to enterprise infrastructure is becoming a primary target for policy intervention. Wright predicts that “repeated disruptions will draw tougher scrutiny from regulators given DORA, NIS2, and the UK’s emerging operational resilience regimes.”

Relying on a concentrated group of intermediaries might make financial sense in the short term, but Wright warns it “poses a structural risk the digital economy cannot ignore.” We are likely to see authorities investigate “the concentration of critical functions in the cloud and edge layers—while businesses rethink whether convenience has quietly outpaced control.”

Cloudflare outage highlights deeper problems

The enterprise infrastructure problem runs deeper than the cloud layer. For Robert Kraal, Co-founder of Silverflow, these outages expose the brittleness of the underlying financial and internet infrastructure. When the outer layers of the network wobble, the rigid backend systems often fracture.

“While the immediate cause may vary, the widespread impact underscores a critical, systemic vulnerability: reliance on outdated or brittle systems that cannot meet modern demand,” Kraal states.

Financial institutions are particularly exposed. “Many companies, including those supporting critical financial services, continue to operate on decades-old infrastructure,” Kraal notes. These legacy cores were never engineered for the “24/7 access, real-time speed, and massive scale” of the current market.

“When modern demands are layered onto this legacy architecture, the inevitable result is instability, downtime, and a growing gap between customer expectations and institutional capability,” says Kraal.

Technical debt from enterprise infrastructure failures

Kraal frames each failure – whether a banking blackout or a CDN crash – as a symptom of “deep-seated systemic technology debt,” rather than an isolated enterprise infrastructure technical hiccup. The fallout of an outage from a provider as critical as Cloudflare is extensive and difficult to contain.

“When vital services are interrupted, the cost goes well beyond an IT issue; it affects business operations, market confidence, and the fundamental trust users place in the digital ecosystem,” Kraal warns.

Patching is no longer a viable strategy. The financial sector and its partners are “rapidly approaching a point where incremental fixes are no longer sufficient.”

To halt these recurring enterprise disruptions, Kraal advises that “infrastructure modernisation must be treated as a strategic priority.” This means funding a rebuild of the core to ensure it is “flexible, scalable, and real-time.” 

Without this capital commitment, the outcome is predictable: this latest Cloudflare outage won’t be the last. As Kraal summarises, “outages will remain a recurring, costly threat to stability and trust.”

See also: Automated threats and cloud resilience top 2026 security agenda

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Tags: cloud, cloudflare, connectivity, digital transformation, Enterprise, infosec, infrastructure, outages, resilience, Security