A major IT outage caused by a faulty update from cybersecurity firm CrowdStrike wreaked havoc on computer systems worldwide on Friday. The disruption impacted critical services, including:
- Airport Check-Ins: Travelers faced delays and cancellations as airport check-in systems malfunctioned.
- Financial Services: Banks and other financial institutions experienced network outages.
- Media Companies: News broadcasts were interrupted due to technical issues.
- Retail: Supermarkets and other businesses encountered disruptions.
Flight Cancellations and Delays Plague Travelers
The outage caused significant disruptions in the aviation industry:
- US Airlines Ground Flights: Major US airlines like American, United, and Delta temporarily grounded all flights.
- Australian Delays: Sydney Airport, a major transportation hub, experienced delays as the outage unfolded.
Paris Olympics IT Systems Affected
The Paris 2024 Olympic organizers reported limited impacts on their IT systems, primarily affecting the arrival of some delegations. Ticketing and the torch relay remained unaffected.
Crowdstrike Shares Plummet 15% After Global Outage
Crowdstrike’s stock took a major hit on the Nasdaq, opening nearly 15% lower today. This translates to a staggering $12.5 billion wiped off the cybersecurity company’s market value.
The drop comes in the wake of a global IT outage caused by a faulty Crowdstrike software update. The incident disrupted critical infrastructure and services worldwide, leading to travel delays, financial disruptions, and media blackouts.
Tech analyst Dan Ives of Wedbush Securities acknowledges the potential damage to Crowdstrike’s reputation. He emphasizes the need for the company to “go into next gear” with its brand and marketing efforts to mitigate the negative impact.
However, Ives remains optimistic about Crowdstrike’s long-term prospects. Despite the recent outage, he sees the company as a solid investment opportunity.
Airlines Begin Recovery Efforts
By Friday afternoon, major US airlines like Delta, United, and American started resuming operations after resolving the technical issue. However, delays and cancellations were expected to persist throughout the day as airlines worked to normalize their flight schedules.
Cause of the Outage: Faulty CrowdStrike Update
The outage stemmed from a defective update deployed by CrowdStrike for Microsoft Windows hosts, according to the cybersecurity firm’s CEO, George Kurtz.
Microsoft Azure Services Impacted
Microsoft confirmed a service disruption affecting a subset of its Azure customers in the Central US region, starting Thursday evening. Azure is a cloud computing platform used by many businesses.
Resolution Expected by Saturday
Experts anticipate the situation to be “pretty well back to normal” by Saturday morning.
