CrowdStrike stock slides as faulty update hit 8.5 million devices

A global tech outage caused by a software update from cybersecurity firm CrowdStrike has impacted nearly 8.5 million Microsoft devices, according to a blog post by Microsoft. Despite affecting less than one percent of all Windows machines, the repercussions were significant, causing widespread disruptions across various sectors.

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The faulty update triggered system issues that led to flight cancellations, and broadcast disruptions, making critical services such as healthcare and banking inaccessible. Microsoft noted the broad impacts, emphasizing CrowdStrike’s crucial role in enterprises that manage essential services. In response, CrowdStrike has collaborated with Microsoft to develop a solution that will expedite a fix for Microsoft’s Azure infrastructure. Microsoft has also worked with Amazon Web Services and Google Cloud Platform, sharing information to address the situation effectively.

We’re working around the clock and providing ongoing updates and support. Additionally, CrowdStrike has helped us develop a scalable solution that will help Microsoft’s Azure infrastructure accelerate a fix for CrowdStrike’s faulty update. We have also worked with both AWS and GCP to collaborate on the most effective approaches.

While software updates may occasionally cause disturbances, significant incidents like the CrowdStrike event are infrequent. We currently estimate that CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines. While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.

The aviation industry, in particular, faced severe consequences with thousands of flights canceled, causing major delays. Delta Air Lines, one of the hardest-hit carriers, reported over 600 flight cancellations by Saturday morning and anticipated further disruptions. This tech outage not only disrupted travel but also caused significant inconvenience to passengers worldwide.

CrowdStrike’s CEO, George Kurtz, apologized for the chaos caused by the update and assured that the company is actively assisting affected customers. The Texas-based cybersecurity firm, with nearly 30,000 customers globally, saw its stock value drop by 11 percent following the outage.

The issue originated from a routine sensor configuration update pushed to Windows systems, which triggered a logic error resulting in widespread system failures. In response, Microsoft has released a USB tool to help IT administrators expedite the repair process for affected Windows clients and servers. Microsoft is also deploying hundreds of engineers and experts to work directly with customers to restore services.

About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.