Cybersecurity firm CrowdStrike experienced a significant drop in its share price on Friday following an update that led to a widespread outage, affecting businesses globally.
The company, known for its software that helps firms manage IT security, saw its shares plummet 20% in US premarket trading.
Meanwhile, Microsoft also faced issues with its Azure cloud services and Microsoft 365 suite of apps, leading to a 2.5% decline in its shares during premarket trading.
Impact of CrowdStrike’s update issue
CrowdStrike’s major outage was caused by an issue with an update affecting its Falcon Sensor product. This software is crucial for stopping cyber breaches using cloud technology.
The outage resulted in significant disruptions, with various websites going down, flights being grounded, and TV studios halting broadcasts. CrowdStrike is currently rolling back the problematic update on a global scale.
Cybersecurity experts reported that the update issue directly affected Windows systems worldwide, causing many laptops to display the notorious “blue screen of death.”
This incident highlights the critical role that CrowdStrike’s Falcon Sensor plays in maintaining the cybersecurity of numerous enterprises.
Microsoft’s cloud service issues
On the same day, Microsoft reported that its cloud services had mostly been restored after experiencing an outage affecting its cloud apps in the US. The services impacted included the Azure cloud platform and the Microsoft 365 suite.
Although it remains unclear if Microsoft’s issues were related to CrowdStrike’s update problems, the simultaneous disruptions have raised concerns about the resilience of cloud-based security solutions.
Microsoft’s brief outage underscores the vulnerabilities that even major tech firms face in maintaining continuous service for their cloud platforms.
The 2.5% dip in Microsoft’s share price reflects investor apprehension about the reliability of its cloud services, which are integral to many businesses’ operations.
Reliability of cybersecurity under question
The simultaneous outages from CrowdStrike and Microsoft have prompted a broader discussion about the stability and reliability of cloud-based cybersecurity solutions.
These events have shown that even leading cybersecurity and tech firms are not immune to operational disruptions. Investors reacted sharply to the news, reflecting concerns about the potential impact on business continuity and security.
The significant drop in CrowdStrike’s share price highlights the market’s sensitivity to operational risks in the cybersecurity sector.
For Microsoft, the decline, while less severe, still points to concerns about the dependability of cloud services that many businesses rely on daily.
As both companies work to address and rectify these issues, the incidents serve as a reminder of the critical need for robust and resilient cybersecurity measures in an increasingly digital world.
What happened to service around the world?
Many global services, from airlines to media outlets to banks and airports to football clubs were brought to a standstill as a massive IT outage disrupted their online systems.
Users of Microsoft Windows across the world took to social media to report experiencing the “Blue Screen of Death” error which caused their systems to suddenly shut down or restart.
Pictures shared by users of their screens showed the message, “It looks like Windows didn’t load correctly. If you’d like to restart and try again, choose Restart my PC below.”
Experts pointed out to a problem with the Crowdstrike security software behind the meltdown.
Downdetector reported sudden spikes in outages across the Microsoft store, Microsoft 365, Microsoft Teams as well as Microsoft Azure in the last 24 hours.
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