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Budget, Personnel Cutbacks Could Be a Cause of It Outages

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When eBay Inc.'s PayPal unit suffered a worldwide outage early last month, Sailrite Enterprises Inc., a sailing supply company based in Churubusco, Ind., lost its critical customer payment services for six hours. The next day, PayPal's services failed Sailrite again — this time for about an hour, according to Matt Grant, a vice president at Sailrite. Grant was not amused. He posted a blunt message on PayPal's blog site: "This is not acceptable."

The PayPal electronic payment system is one of many Internet-based services that have been hit with outages. And based on news reports, the number of such incidents appears to have been increasing in recent months, analysts said. Observers pointed to several possible reasons for the apparent uptick in online outages, including IT budget and personnel cutbacks, increasing corporate dependence on hosted applications — and bad luck.

From Computerworld
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