The global technology outage sparked by CloudStrike’s faulty update will cost US Fortune 500 companies $5.4bn, insurers estimated, as the cybersecurity firm vowed to make changes to prevent it from happening again, The Guardian reported.
The projected financial losses exclude Microsoft, the tech giant whose systems suffered widespread failures in the crash.
Companies in banking and healthcare are expected to be hit the hardest, according to the insurer Parametrix, as well as major airlines. The total insured losses for the non-Microsoft Fortune 500 companies could be between $540m and $1.08bn.
According to The Guardian, a variety of industries are still struggling to rectify the damage from CrowdStrike’s outage, which grounded thousands of flights, caused turmoil at hospitals and crashed payment systems in what experts have described as the largest IT failure in history. The outage exposed how modern tech systems are built in precarious ground, with faulty code in a single update able to bring down operations around the world.
CNN reported insurers have begun calculating the financial damage caused by last week’s devastating CrowdStrike software glitch that crashed computers, canceled flights, and disrupted hospitals all around the globe — and the picture isn’t pretty.
What’s been described as the largest IT outage in history will cost Fortune 500 companies alone more than $5 billion in direct losses, according to one insurer’s analysis of the incident published Wednesday.
The new figures put into stark relief how a single automated software update brought much of the global economy to a sudden halt — revealing the world’s overwhelming dependence on a key cybersecurity company — and what it will take to recover.
The estimates come the same day that CrowdStrike issued a preliminary report on how it inadvertently caused the widespread IT meltdown. It is the most dedicated technical analysis to date of the outage.
Businesses are scrambling to recover – especially Delta Air Lines. Delta is still dealing with fallout from the glitch, as thousands of flights have been canceled. The Department of Transportation is investigating.
TechCrunch reported CrowdStrike, the cybersecurity firm that crashed millions of computers with a botched update all over the world last week, is offering its partners a $10 Uber Eats gift card as an apology, according to several people who say they received the gift card, as well as a source who also received one.
On Tuesday, a source told TechCrunch that they received an email from CrowdStrike offering them the gift card because the company recognizes “the additional work that the July 19 incident has caused.”
“And for that, we send our heartfelt thanks and apologies for the inconvenience,” the email read. According to a screenshot shared by the source. The same email was posted on X by someone else. “To express our gratitude, your next cup of coffee or late night snack is on us!”
In my opinion, it seems like CrowdStrike is trying to make amends for the botched code it used. Perhaps the company learned something from this, and is – hopefully – putting things in place so this never happens again.