We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
    7 Min Read
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
    chatgpt image jul 13, 2026, 03 59 46 pm
    How Data Analytics Improves Multi-Location Search Strategies
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: The importance of institutional redundancy
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Uncategorized > The importance of institutional redundancy
Uncategorized

The importance of institutional redundancy

ChrisDixon
ChrisDixon
4 Min Read
The importance of institutional redundancy
Illustration generated with FLUX.1 [schnell] via Cloudflare Workers AI.
SHARE

Every system built by a single institution has points of failure that can bring the entire system down. Even in organizations that have tried hard for internal redundancy – for example, Google and Amazon have extremely distributed infrastructures – there will always be system-wide shared components, architectures, or assumptions that are flawed. The only way to guarantee there aren’t is to set up completely separate, competing organizations – in other words, new institutions.

This insight has practical implications when building internet services. One thing I learned from my Hunch co-founder Tom Pinckney is, if you really care about having a reliable website, always host your servers at two data centers, owned by different companies, on networks owned by different companies, on separate power grids, and so forth. Our last company, SiteAdvisor, handled billions of requests per hour but never went down when the institutions we depended on went down – which was surprisingly often.  (We did have downtime, but it was due to our own flawed components, assumptions etc.).

The importance of institutional redundancy is profoundly more important when applied to the internet at large. The US government originally designed the internet to be fully decentralized so as to withstand large-scale nuclear attack. The core services built on top of the internet – the web (HTTP), email (SMTP), subscription messaging (RSS) – were made similarly open and therefore distributable across institutions. This explains their remarkable system-wide reliability. It also explains why we should be worried about reliability when core internet services are owned by a single company.

More Read

Evolving to the Next Generation of ERP Systems
Evolving to the Next Generation of ERP Systems
Maps are Just Another Element
The Challenge of Predicting Consumer Response to Innovation
The Battle of Britain: Thought Leadership in Information Management
Efficient DAM Systems for Revitalizing the Content Marketing Platform

The principle of not depending on single institutions applies beyond technology. Every institution is opaque to outsiders, with single points of failure, human and otherwise. For example, one of the primary lessons of the recent financial crisis is that the most important form of diversification is across institutions, not, as the experts have told us for decades, across asset classes. The Madoff fraud was one extreme, but there were plenty of cases of lesser fraud and countless cases of poor financial management, most of which would have been almost impossible to anticipate by outsiders.

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Flat editorial illustration: The article explains that training robots for physical interaction requires three distinct data cate
Physical AI: What Data Do You Need to Train a Robot?
Artificial Intelligence Exclusive Robotics
What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
Analytics Big Data Exclusive Software
Flat editorial illustration: The article examines AI agents that escalate from legitimate data retrieval to attempted intrusions
OpenAI’s Government Website Incidents Raise a Hard Question for AI Agents: When Should They Stop?
Artificial Intelligence News Security
Flat editorial illustration: The article's core relationship is the alignment between customer behavioral data (visit frequency,
Data-Driven Loyalty: How Restaurants Use Behavioral Analytics to Optimize Revenue
Exclusive

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Social Collaboration Barriers in SMBs and Enterprises
Uncategorized

Social Collaboration Barriers in SMBs and Enterprises

6 Min Read
5 Reasons Why Excel Isn't Enough for Financial Reporting
Uncategorized

5 Reasons Why Excel Isn’t Enough for Financial Reporting

14 Min Read
Big Data: What's a Brontobyte Again?
Uncategorized

Big Data: What’s a Brontobyte Again?

8 Min Read
Are Your Business Applications Unnecessarily Complex?
Uncategorized

Are Your Business Applications Unnecessarily Complex?

5 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?