What Is CrowdStrike? The Company at the Center of Today’s Global Tech Outage
If you experienced issues trying to board a flight, access your bank account, or make an emergency call today, you may have been affected by a global tech outage linked to CrowdStrike. The disruption, which began Friday morning, has impacted numerous corporate Windows PCs worldwide. The root cause was not a cyberattack but a faulty update released by the cybersecurity firm. As IT departments scramble to resolve the issues and executives issue apologies, here’s a closer look at who CrowdStrike is and how this situation unfolded.
Who Is CrowdStrike?
CrowdStrike, founded in 2011, provides enhanced security solutions for businesses, beyond what basic Windows Security offers. The firm specializes in detecting data risks, leaks, and vulnerabilities. CrowdStrike has been instrumental in several high-profile investigations, such as the 2014 Sony Pictures hack and the 2015-2016 Russian cyberattacks on the Democratic National Committee. With approximately 29,000 customers and $900 million in recent quarterly revenue, the company plays a significant role in enterprise cybersecurity.
The impact of a single problematic update from this major player has been severe, leading to the grounding of over 3,000 flights and causing widespread disruptions. As of now, CrowdStrike’s stock has fallen by over 11% on the NASDAQ.
How Did This Happen?
The issues originated from an update to CrowdStrike’s Falcon Sensor, a product designed to protect cloud-based files. Fortunately, this problem affects only enterprise-level software, not personal computers. The incident is not due to a cyberattack or data breach, so client data remains secure.
However, the faulty update has proven challenging to rectify, causing continued disruptions in air travel and logistics. While CrowdStrike supports Windows, Mac, and Linux, the current outages are limited to Windows systems. Microsoft has acknowledged the issue and is collaborating with CrowdStrike to provide technical support.
Who Uses CrowdStrike?
Even if you’re not directly using CrowdStrike, you might still be impacted if you interact with companies that rely on its services. Major clients include Google, Amazon, Intel, and Target. Thus, disruptions in these businesses could affect everyday tasks, such as grocery shopping.
What Happens Next?
CrowdStrike has released a fix for the issue, but implementing it involves removing the problematic file from each affected computer, which may take time. CEO George Kurtz has apologized and assured that the company is fully mobilized to assist clients. He also cautioned users to verify they are dealing with official CrowdStrike representatives to avoid potential scams.
The company’s stock dropped 12% in premarket trading, reducing its market value from $83.5 billion at Thursday’s close. Regulators are expected to take an interest in the situation, though official statements are pending.
This incident may boost the market positions of CrowdStrike’s competitors, such as Palo Alto Networks and Zscaler. Additionally, the problems experienced today may drive more users toward Mac and Linux systems, as the issue has been linked to Microsoft and Windows services.
