Over the weekend, businesses around the world scrambled to recover after a faulty software update caused one of the biggest IT outages in history. The Texas-based cybersecurity firm Crowdstrike released a security update last Thursday that was supposed to protect computers from malware and cyber attacks. Instead, the flawed update caused Microsoft Windows to crash and impacted more than 8.5 million computers. The global tech meltdown disrupted nearly every aspect of society, especially healthcare and transportation. Hospitals canceled procedures, and 911 lines were down in states across the country. Airlines grounded thousands of flights when they were no longer able to scan boarding passes or track crew members.
The technology outage also had a massive impact on small businesses owners, who rely on providers like Microsoft to keep them online. Chris Seabrook, who owns a locksmith business in Australia, said he couldn’t send or receive emails, access important files, manage his schedule, or create invoices. To avoid losing money, he borrowed a friend’s non-Microsoft device to continue working until he could figure out how to fix his PC. “As a one-man business, every minute counts,” said Seabrook.
Most small businesses do not have their own IT departments, so it took them longer to recover than big companies who have experts on the payroll. Tsvetta Kaleynska, who owns a consumer insights research firm in Manhattan, couldn’t pay her employees or send information to clients because of the outage. She lost 25 percent of her annual earnings because the online signature platform Docusign was down. “If I were part of a big company, then I would be able to delegate and get support from computer science or security services,” said Kaleynska. “But as a small business owner, I am depending only on myself. It’s pretty devastating.”
Questions:
- What caused the global technology outage that caused havoc around the world over the weekend?
- Why are big companies often able to recover from IT outages faster than small businesses?
Sources: Anne D’Innocenzio and Haleluya Hadero, “Small Businesses Grapple with Global Tech Outages Created by CrowdStrike,” Associated Press, July 21, 2024.