In November 2025, a significant Cloudflare outage set off a cascade of internet disruptions affecting countless users and businesses globally. As one of the primary providers of content delivery and internet security services, Cloudflare's sudden failure exposed the fragile underpinnings of modern internet architecture. This incident serves as a wake-up call, highlighting the pressing need for more robust disaster recovery plans and diversified service dependencies.

The Cloudflare outage of November 2025 disrupted critical online services globally, exposing vulnerabilities in centralized network service provision. Businesses and individuals were forced to grapple with the immediate repercussions, underscoring the importance of learning from this event. With significant ramifications for internet-dependent models, it is essential to understand what went wrong and how similar disruptions can be mitigated in the future.

The Wake-up Call for SMEs

SMEs in the UK, many of whom rely heavily on web-based platforms, felt the shockwaves of the outage. From e-commerce operations being halted to service-based businesses unable to reach their clientele, the dependency on single-point services like Cloudflare became glaringly apparent. The internet's current state of vulnerability stems largely from over-reliance on major nodes or service providers which, when disrupted, can lead to widespread breakdowns.

This event serves as a crucial moment for business owners to evaluate their own dependencies. While many understand the need for strategic diversification in financial investments, similar strategies must now be applied to IT infrastructures. Diversification should not be limited to leveraging multiple financial backers but extended to critical service vendors as well.

Developing Resilience

What does this mean in practice? First, it requires businesses to consider their IT strategies. For instance, integrating multiple content delivery networks (CDNs), much like diversifying a loan portfolio across different lenders, can help mitigate risk. Additionally, robust business continuity plans come into play. Such plans should not only focus on financial survival but operational continuity during tech failures.

Investing in resilience has long-term merits. The recent Cloudflare incident highlights that over-dependence on a singular platform is risky. By spreading technological risks, companies can replicate the benefits of diversified funding - reducing potential points of failure.

My Take

In my experience covering the UK lending and equity markets, I've seen the benefits of diversification warned against in finance now appearing relevant in IT. The UK government’s guidance on business continuity emphasizes preparing for all kinds of disruptions, digital included. The reality is, as many businesses smartly diversify their financial approaches, the technological side must follow suit.

The uncomfortable truth is that many SMEs continue to focus solely on financial mitigations, forgetting the operational side. As companies move forward post-Cloudflare, a dual approach focusing on both finance and technology is imperative. Better diversification and robust disaster plans should no longer remain an afterthought but a priority in both domains.

Ultimately, future-proofing an SME today means reinforcing both financial and technical infrastructures. As we focus on applying these lessons from the tech crash in 2025, the blended approach will foster enduring resilience and improve responsiveness to both market and service disruptions alike.