It will be interesting to see how Google explain this event.
It is difficult to think up reasons for the outage that don't put dents in Google's claims of being reliable enough to trust ones entire business to. After all, if you've trusted your entire business to Google's cloud (Docs, mail, everything) then when Google are down there's nothing you can do; you're not working. There's not even a phone number you can call.
At least if you have your own IT you can go and harry the IT guys.
Companies are very bad at risk management. It always seems that they refuse to consider highly unlikely scenarios that have devastating consequences. For instance how many outfits are there that have all their IT in a cloud and have an effective Plan B in their sleeve just in case? Companies like Google are highly unlikely to go off line completely for a long stretch, but if all your IT is Googlised and they do vanish for a few days, your business is guaranteed to be in deep trouble.
So what exactly would a good Plan B be? There's no easy way to start using another cloud because there is no way to do a bulk export of everything (docs, calendars, contacts, sheets and mail, etc) that you can bulk import into another cloud. In fact such a thing would be the very last thing that Google, Microsoft, etc. would want to give you. I know that you can get at the data piecemeal, but file by file and user by user exports and imports is no way to perform disaster recovery.
Synchronising a cloud with your own IT is more like it, but surely the whole point of a cloud is to avoid having your own IT. Such synchronisation is available only because the cloud providers offer it as a way to get going with a cloud; I don't expect that it will be something that will work reliably and well forever.
And if you're going to have your own IT then what exactly is the cloud for anyway? Backup?
To me and presumably anyone else that cares about coping with the ultimate What-If problems clouds just don't meet the requirements. However, with the likes of Microsoft, Apple and Google trying very hard to push their customers onto their respective clouds and a large be action of those customers being happy (or stupid) enough to go along with that, what choice will there be for those that want to do things on their own IT?
Clouds also bring big national risks. Say Google got to the position where 50% of American companies were wholly dependent on Google's cloud for their docs, sheets, contacts databases, etc. That would mean that 50% of the US economy is just one single hack attack away from difficulty and possibly disaster. Is that a healthy position for a national economy to be in? Isn't that a huge big juicy target for a belligerent foe, be they an individual or nation state? After all, Google's networks have been penetrated before (they blamed the Chinese as it happens); why not again?