Too big to fail. Or too embedded to fail?
By Sandeep Ajgaonkar
TBTF. Too Big to Fail.
The phrase took hold in the United States in 2008, when the subprime crisis, the collapse of Lehman Brothers and the rescues of Bear Stearns and AIG showed that some institutions were so interconnected their failure could hurt far more than their shareholders. Their failure was no longer a private matter.
Regulators responded with closer scrutiny, capital requirements and stress testing.
Is technology nearing a similar moment? Have some companies become Too Big to Fail or, more accurately, Too Embedded to Fail?
The real systemic risk in technology may no longer come from size. It comes from dependency.
Technology holds everything together:
Governments – cloud infrastructure.
Companies – collaboration, identity, cybersecurity and enterprise platforms.
Developers – code repositories and AI infrastructure.
Citizens – digital payments, communications and online public services.
The modern economy does not simply use technology. It runs on it.
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