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Reading: Who is CrowdStirke and how did it impact the global outage? [updated]
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Who is CrowdStirke and how did it impact the global outage? [updated]

GEEK STAFF
GEEK STAFF
July 19, 2024

CrowdStrike, a global cybersecurity giant, inadvertently unleashed chaos across the digital landscape with a faulty update, crippling thousands of Windows machines worldwide. The outage triggered the infamous “Blue Screen of Death” (BSOD) and trapped systems in a recovery boot loop, leaving businesses paralyzed.

The impact was widespread, affecting diverse sectors including media, aviation, and finance. Notable victims included Sky News, Ryanair, Berlin Airport, and countless others, facing operational disruptions and financial losses.

But what exactly is CrowdStrike, and how did a single update wreak such havoc?

CrowdStrike: The Cybersecurity Powerhouse

Established in 2011, CrowdStrike is a leading cybersecurity firm specializing in cloud-delivered endpoint protection. Its comprehensive suite of products and services safeguards against cyber threats and detects attacks. The company also plays a crucial role in threat intelligence, analyzing and reporting on emerging cyber risks.

Their flagship product, Falcon, is a sophisticated cloud-native platform renowned for its advanced threat detection,prevention, and response capabilities. Leveraging machine learning and behavioral analysis, Falcon’s next-gen antivirus (NGAV) effectively combats diverse threats like malware, ransomware, and even zero-day exploits.

Moreover, the platform’s endpoint detection and response (EDR) features continuously monitor endpoint activity to identify suspicious behavior. The cloud-native architecture ensures scalability and seamless management of vast data volumes, allowing for effortless updates and maintenance.

CrowdStrike Falcon also integrates threat intelligence services, providing organizations with real-time information on emerging threats and vulnerabilities gleaned from millions of sensors worldwide.

The Source of the Chaos

Ironically, the catastrophic outage stemmed from a faulty update to CrowdStrike’s own Falcon product. The company acknowledged the issue in a recorded phone message, confirming widespread reports of crashes on Windows hosts related to the Falcon Sensor.

CrowdStrike’s Impact

With a current valuation estimated at $80.58 billion, CrowdStrike boasts an impressive client base exceeding 20,000 organizations. The company’s recent financial reports highlight its continuous growth, achieving record-breaking figures in annual recurring revenue, total revenue, cash flow operations, and more.

This unfortunate incident serves as a stark reminder of the interconnectedness of our digital world and the potential consequences of even minor software glitches. While CrowdStrike swiftly addressed the issue, the damage inflicted upon businesses and critical infrastructure highlights the importance of comprehensive disaster recovery plans and stringent testing protocols in the cybersecurity realm.

Updated at 17:23 UAE

In his first TV interview since the incident, CrowdStrike’s CEO appeared on NBC’s Today morning show to address the situation. He began by expressing his “deep regret” for the impact the incident had on affected individuals.

Kurtz assured viewers that the company has “resolved the issue” and is “working with each and every customer to bring them back online.” However, he acknowledged that it “could take some time for some systems that won’t automatically recover.” Despite this, he emphasized, “we will not relent until every customer is back to where they need to be.”

The massive outage of Windows systems, caused by a buggy software update from CrowdStrike, is being described as the largest IT-based outage in history. CNBC reported that the outage briefly grounded flights from major airlines like American, Delta, and United. In Germany, two hospitals canceled elective procedures, and UK grocer Waitrose temporarily halted contactless payments.

NBC News reported that 15 major hospitals in Israel were affected, and Alaska’s 911 emergency calls were disrupted. Sky News in the UK also experienced a brief interruption in airing live news.

During his Today Show interview, Kurtz suggested that CrowdStrike will conduct an investigation into the incident, stating, “We need to go back and see what happened here.” There is no word yet on whether the US government or other governments will launch their own investigations.

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