On Friday, services across airlines, healthcare, shipping, and finance began to return to normal after a security software update error caused global computer system outages. This incident underscored the vulnerabilities within our interconnected technologies.
Following the resolution of the outage, companies were left to handle backlogs of delayed and canceled flights, missed medical appointments, and other disruptions, which could take days to address. Businesses are also grappling with how to prevent future outages caused by technology intended to protect their systems.
The problem stemmed from a software update by cybersecurity firm CrowdStrike (CRWD.O), a major player in the industry. The update led to system failures that affected flights, broadcasting services, and access to healthcare and banking. FedEx (FDX.N) experienced significant disruptions, and content moderators on Meta’s Facebook were also impacted.
CrowdStrike, though not widely known, is an $83 billion company with over 20,000 global clients, including Amazon.com (AMZN.O) and Microsoft (MSFT.O). CEO George Kurtz acknowledged on social media that a defect in a single update for Windows hosts affected Microsoft customers and apologized for the disruption.
The incident has sparked debate about whether such critical software should be controlled by a few major firms. It also highlighted the lack of effective contingency plans for IT failures, suggesting that improved backup systems and contingency planning are needed to prevent future outages.
