Somewhere a sysadmin is having to explain to a mildly technical manager that AWS services are down and affecting business critical services. That manager will be chewing out the tech because the status site shows everything is green. Dishonest metrics are worse than bad metrics for this exact reason.
Any sysadmin who wasn't born yesterday knows that service metrics are gamed relentlessly by providers. Bluntly there aren't many of us, and we talk. Message to all providers: sysadmins losing confidence in your outage reporting has a larger impact than you think. Because we will be the ones called to the carpet to explain why <services> are down when <provider> is lying about being up.
AWS Employee #1: Hey, people are catching on that our status page isn't accurate
AWS Employee #2: Tell them it's cause of S3
The status information is hosted there.
edit: oh, it is actually because of the outage! So if they can't get a fresh read on the service status from s3, they just optimistically assume it's green... even though the service failing to provide said read... is one of the services they're optimistically showing as green XD
But isn't that the whole point of lying: to the less technical manager (often the only person whose view matters at major customers), the status board saying "up" means the problem is the sysadmins, not the vendor.
For example, by experience and gossip I know Wind stream has awful reliability, but they handwave that away. By including a requirement I knew they couldn't meet (dynamic E911), they were knocked out of a 200 site VoIP RFP early.
When SLA's are in play and so are job performance scores and bonuses there is probably a strong incentive to fudge numbers. It can be done officially ("Ah but sub-chapter 3 of chapter X in the fine print explains this wasn't technically an outage") or unofficially.
- Architectural SPOFs (single points of failure) need to be carefully weighed up in any design, and "ALL our files are on $single_provider" is one such huge red flag. Unfortunately these considerations are all too frequently drowned out by the ease of going with the least path of resistance.
For example GitHub occasionally goes down, which breaks a remarkable amount of infrastructure: a huge number of people don't know how to use Git, do full clones from scratch each time, and have no idea how to work without a server (even though Git is built to work locally); CI systems tend to want to do green-field rebuilds, so start out with empty directory trees and need to do full clones each build (I'm not sure if any CI systems come with out-of-the-box Git caching); GH-powered authentication systems fall apart; etc. Kinda crazy, scary and really annoying, but yeah.
In terms of "nail in the coffin", that depends on a lot of factors, including a subjective analysis of how much local catastrophe was caused by the incident; subjective opinions about the provider's reaction to the issue, what they'll do to mitigate it, perhaps how transparent they are about it; etc.
Ultimately, the Internet likes to pretend that AWS and cloud computing is basically rock-solid. Unfortunately it's not, and stuff goes down. There were some truly redundant architecture experiments in the 80s (for example, the Tandem Nonstop Computer, one of which was recently noted to have been running continuously for 24 years: https://news.ycombinator.com/item?id=13514909) but x86 never really went there, and superscalar computing is built on a sped-up version of the same ideas that connect desktop computers together, so while there are lots of architectural optical illusions, well, stuff falls apart.
- Everyone in this thread is talking about Google Compute Engine, but it really depends on your usage patterns and requirements. GCE is pretty much the single major competitor to AWS, although the infrastructure is _completely_ different - different tools, different APIs, different pricing infrastructure. The problem is that it's not like like MySQL vs PostgreSQL or Ubuntu vs Debian; it's like SQL vs Redis, or Linux vs BSD. Both work great, but you basically have to do twice the integration work, and map things manually. With this said, if you don't have particularly high resource usage, VPS or dedicated hosting may actually work out more cost-effectively.
TL;DR: you go back to the SPOF problem, where _you_ have to foot the technical debt for the reliability level you want. Yay.
The bad guys are the providers who report false positives to preserve metrics.
Greenish ELB, RDS.
Yellow EC2, Lambda.
Red S3, Auto Scaling.
EDIT: A few dozen services in us-east-1 are down/degraded.