What happens when the cloud bursts? Skype shows the risks...

I beleive that the recent failure of Skype shows how dependant some businesses are becoming on cloud based services. Although Skype isn't a true Cloud technology, as you need to install its software locally, the service uses the WWW in a 'cloud like way' to transport data. Skype's recent system failure (click here for BBC news story) have left businesses that are reliant on its services wide open to problems; especially those that have no alternative solutions in place. There are likely to be many more events like this over the coming years and the lessons learnt for some organisations may be terminal. The Cloud places risks into any adopting organisation and each risk needs to be evaluated with mitigaton strategies in place should specific 'critical' events occur. I question how many organisations, particularly smaller businesses, undertake this level of contingency planning however.