Shares of cybersecurity company CrowdStrike fell over 13% due to a global IT outage. Chief Security Officer Shawn Henry called it a “gut punch” for the company, which was once highly trusted. “We let down those we promised to protect,” he said. Many businesses are still recovering after a faulty update crashed 8.5 million Microsoft Windows computers worldwide.
Some computers needed manual reboots. Henry, a former FBI executive, described the weekend as the most challenging 48 hours in his 12 years at CrowdStrike. He promised the company would come back stronger. “Our confidence was lost quickly, and it hurt,” he wrote on LinkedIn. “But this is nothing compared to the pain we caused our customers and partners.”
Delta Airlines was heavily affected, canceling over 4,000 flights since Friday, with more than 800 on Monday, according to Flight Aware. Delta said more than half its IT systems are Windows-based and need manual repair.
CEO Ed Bastian said everyone at Delta is working around the clock to fix the issues. On Sunday, he apologized to customers, while US Transportation Secretary Pete Buttigieg said the government received complaints about “continued disruptions and unacceptable customer service.”
Other organizations, like the UK’s National Health Service (NHS), are seeing their systems return to normal.
Cabinet Office Minister Ellie Reeves told the House of Commons that most sectors affected by the CrowdStrike bug, including aviation, railroads, and maritime systems, had mostly recovered.
However, she warned some minor disruptions would continue, including at the NHS. Reeves added that the government would review the incident to learn lessons, highlighting the world’s dependence on complex IT systems and the need for preparedness.
CrowdStrike, founded in 2011, has about 29,000 customers worldwide, including major government agencies and large companies.
Before the incident, its shares were up nearly 40% this year. On Sunday, CrowdStrike said many affected devices were back online, but its shares dropped 11% on Friday and another 13% on Monday, closing at under $264.
Some investors believe CrowdStrike’s rivals will benefit from its struggles, pointing to the world’s reliance on one major player.
For example, Sentinel One saw its shares rise more than 8% on Monday. Despite the damage to CrowdStrike’s shares, analysts don’t foresee long-term harm.
Gene Munster of Deepwater Asset Management noted that few alternatives to CrowdStrike exist and switching costs are high. He expects few long-term customer losses.
Dan Ives of Wedbush Securities said resolving the issues this week is critical but maintains a positive long-term view of CrowdStrike and the cybersecurity sector.
For more detailed coverage, you can check the original article on BBC News.
https://www.bbc.com/news/articles/c725knvnk5zo