It is their fault. The company could have used global load balancing with the app hosted in multiple geographically distributed data centers in multiple national jurisdictions through multiple independent providers. This would ensure that the earthquake which leveled Amazon's California data center and the flood which took out Hetzner's data center in Germany and the martial law declaration which took out Linode's Japanese data center and the bankruptcy which closed down Rackspace's Amsterdam data center has no operational impact on Peer1's data center in New York where the service continues uninterrupted. As the data is fully synchronized between all data centers, the company keeps running, all customers are online, and the company can work on setting up additional redundancy in a Canadian data center to make up for the others which were lost.
Yes, this costs money. It's why people accustomed to getting everything for free on the internet can't fathom why larger companies charge six or seven figures for a service that they could roll out themselves by installing an open source package on some Linode VM. If you're paying that kind of money for the reliability, it's because you're extending a promise to your end customers, and the service contract you receive from your provider should come with lots of guarantees and financial penalties if the conditions warranting the price tag aren't met.
Yes, this costs money. It's why people accustomed to getting everything for free on the internet can't fathom why larger companies charge six or seven figures for a service that they could roll out themselves by installing an open source package on some Linode VM. If you're paying that kind of money for the reliability, it's because you're extending a promise to your end customers, and the service contract you receive from your provider should come with lots of guarantees and financial penalties if the conditions warranting the price tag aren't met.