European Startups Aim to Mitigate Outage Risks After Cloudflare Incident

Following a significant outage at Cloudflare, European startups are innovating to enhance digital infrastructure resilience and reduce reliance on major providers.

Major Cloudflare Outage Causes Disruption Across Key Services

On November 18, 2025, the internet faced considerable disruption due to a major outage at Cloudflare, one of the leading infrastructure providers globally. This incident affected numerous critical services, including Spotify, X, ChatGPT, Visa, Vodafone, Microsoft Teams, and several prominent retailers in the UK. The incident underscored the crucial role that Cloudflare plays in the global web framework, with even EU-Startups.com experiencing performance issues during the outage. Cloudflare identified an unusual traffic spike just before midday GMT, which led to widespread errors across its network and prompted the company to temporarily disable certain services for users in the UK while a fix was implemented. Although Cloudflare has since resolved the issue, some clients continue to report difficulties with logins and dashboard access.

Impact on Digital Commerce and Infrastructure

The ramifications of such outages are particularly severe in the e-commerce and payments sectors. Thomas Gillan, the CEO of BR-DGE, highlighted the fragility of the internet’s infrastructure, noting that the failure of a core provider can have a ripple effect across global commerce. He pointed out that when a key infrastructure supplier encounters problems, the repercussions extend beyond a single site going offline, impacting various dependent services including payment APIs and checkout systems. Gillan further noted alarming statistics, revealing that 92% of enterprise e-commerce merchants have experienced payment outages in the past two years, with some suffering losses exceeding €11.3 million (£10 million). He emphasized that bolstering resilience should be a strategic priority for businesses, not merely an optional feature.

Echoing Gillan’s concerns, Fadl Mantash, the Chief Information Security Officer at Tribe Payments, stressed that issues with a single upstream provider can lead to widespread disruptions across multiple industries. She advocated for a proactive approach, encouraging teams to prepare for potential failures by rehearsing various scenarios and developing modular systems that can isolate faults effectively. Mantash underscored the importance of ensuring confidentiality, integrity, and availability at all times.

European Startups Leading the Charge in Resilience

In light of Cloudflare’s American origins, the recent outage has sparked discussions about the need for greater European involvement in critical digital infrastructure. Several European startups are currently developing innovative technologies aimed at enhancing resilience and reducing dependence on major global companies such as Cloudflare, AWS, and Microsoft Azure. These startups may not directly replace Cloudflare but are focusing on diversifying deployment strategies and minimizing reliance on single vendors.

Among those leading this initiative is Cloudsmith, based in Belfast, UK, which recently secured €21.9 million to expand its cloud-native artifact management platform. This platform assists organizations in securing and managing their software supply chains across different regions and providers, thereby improving resilience against global outages. Lee Skillen, the Chief Technology Officer at Cloudsmith, remarked on the interconnected nature of modern infrastructure, warning that as systems are optimized for scale, the potential for cascading failures increases.

Other notable startups include Exein from Rome, Italy, which raised €70 million in July 2025 to enhance embedded cybersecurity for IoT and critical infrastructure. Nscale in Manchester, UK, recently obtained approximately €936 million to develop large-scale AI infrastructure across Europe, North America, and the Middle East. Additionally, PEAK:AIO and CBRX, based in Manchester and Vilnius, Lithuania, respectively, are also contributing to the development of high-performance storage and cloud-based cybersecurity solutions.

Lessons from Recent Outages

The recent incidents involving Cloudflare, AWS, and Microsoft Azure have illustrated the internet’s vulnerability, revealing a dependency on a limited number of major infrastructure providers. While these companies offer significant benefits in terms of speed and security, their centralization also introduces fragility into the digital landscape. Although it may take time for European companies to fully replace providers like Cloudflare, many are actively working on technologies that enhance the resilience of the digital ecosystem. As the industry continues to evolve, the focus on developing systems that can withstand disruptions has never been more critical. Businesses must now assess how to prepare for future outages and identify the partners and technologies that can help safeguard against such risks.

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