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Crowds gather at an airport in Manila, Philippines, as a global outage impacted flights around the world on July 19, 2024.
Key Takeaways
A defective update from CrowdStrike, a cybersecurity firm, caused global tech outages on Friday.
CrowdStrike provides security software to enterprise customers including major cloud platforms like Microsoft Azure, expanding the impact of the outage.
The issue affected Microsoft’s platforms, airlines, the London Stock Exchange, media outlets, and many other businesses and organizations, including major banks.
CrowdStrike said it identified the source of the issue and a fix has been deployed, though some businesses are still dealing with the effects of the outage.
Shares of CrowdStrike plunged in early trading Friday following the news.
A defective update from cybersecurity company CrowdStrike (CRWD) caused a global outage Friday in Microsoft’s (MSFT) platforms, affecting a wide range of organizations and businesses, including airlines, banks, the London Stock Exchange, media outlets, government agencies, and others.
CrowdStrike said it identified the source of the issue and a fix has been deployed, though some businesses are still dealing with the effects of the outage, sending shares of CrowdStrike plummeting over 10% in early trading Friday.
What You Need To Know About CrowdStrike
CrowdStrike is a cybersecurity company that provides security software to customers and partners including many cloud platforms used by organizations globally. Major cloud platform providers partnered with CrowdStrike include Microsoft Azure, Alphabet’s (GOOGL) Google Cloud, and Amazon’s (AMZN) Amazon Web Services (AWS).
These cloud platforms are also used by businesses across industries, from healthcare to financial services, telecommunications, media, and more, extending the reach of CrowdStrike’s update defect. Microsoft Azure alone serves 95% of Fortune 500 companies.
How CrowdStrike’s Update Defect Caused a Global Outage Friday
A CrowdStrike update defect caused an outage affecting customers using Windows, Microsoft’s operating system, CrowdStrike CEO George Kurtz said around 5:45 a.m. ET Friday. The issue led to disruptions across industries, due to the wide reach of CrowdStrike’s customer base.
There was a spike in outages with Microsoft services like Xbox Live, Microsoft 365, and Teams, according to DownDetector. Some businesses affected included major banks like Bank of America (BAC), social media companies such as Meta (META), and others.
Several airports grounded flights, impacting airlines like Delta Air Lines (DAL), United Airlines (UAL), and American Airlines (AAL), among others. The outage also affected government agencies like the U.K.’s National Health Service.
CrowdStrike said a fix has been deployed and Microsoft reported that some Azure users have recovered, while others are still dealing with the effects of the outage.
Read the original article on Investopedia.
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