Counting the Costs of the Microsoft-CrowdStrike Outage

The glitch felt around the world

Grounded flights, emergency services unreachable, payment systems not functioning — the world is assessing the damage caused by a cascade of IT outages that is spooking investors and grinding many businesses and government services to a halt.

“This outage is historic in scale,” Mikko Hypponen, a research specialist at the software company WithSecure and a cybercrime adviser to Europol, told DealBook.

The problem is being attributed to a tech upgrade gone wrong. All eyes are on CrowdStrike, the cybersecurity company. It issued a software update that is causing Microsoft systems, including its Azure cloud service, to crash or not function properly. George Kurtz, the C.E.O. of CrowdStrike, said on X that a fix is being deployed, adding it’s “not a security incident or cyberattack.”

Here’s the latest:

• American, United and Delta had grounded flights, according to the F.A.A. Airlines in Europe and Asia, including Air France-KLM and Japan Airlines, also had reported delays or cancellations. Some had reported a partial return to service.

• Long queues of airline passengers could be seen at airports around the world, with some resorting to manual check-in.

• In France, the television networks TF1 and Canal+ told the public on X that they could not go on the air on Friday morning. Comcast’s Sky News in the U.K. also went dark for a spell.

The incident points to how reliant the global economy is on a handful of major tech companies to run vital infrastructure. CrowdStrike, a major cybersecurity vendor, is taking the brunt of the hit. Its stock was down nearly 12 percent in premarket trading. Microsoft was down about 1.4 percent, and also said a resolution was forthcoming.

Security has become a big focus in the cloud wars. Google is trying to bolster its cloud operations with an eye on cybersecurity. The company is in talks to buy Wiz, a New York-based cybersecurity firm, in what would be its biggest acquisition ever, and an effort to take market share from Microsoft.

Expect tough questions about the business world’s computing systems. Financial regulators in the U.K. have already begun speaking with financial services companies to learn the extent of the damage on banks and payment companies, The Financial Times reports.

• In other IT news: A U.S. judge dismissed most claims against SolarWinds, an IT security company, and its chief information security officer; the S.E.C. had sued the company after it was hacked by Russian agents in 2020.