Last month, we wrote about the global technology meltdown that impacted more than 8.5 million computers and caused at least $10 billion in financial damage. Triggered by the cybersecurity company CrowdStrike, a faulty software update crashed Microsoft products around the world and in the process revealed how fragile our global technology infrastructure can be. Air transportation was one of the sectors affected most by the outage as airlines were unable to scan boarding passes or track crew members. Carriers canceled more than 5,000 flights globally in one day — including 1,500 flights in the U.S. alone. 

While many airlines were able to get back online within 24 hours, Delta took a bit longer. The company canceled 6,000 flights over one week, more than the total number of flights Delta canceled in all of 2019. The airline said the outage will ultimately cost $500 million, an amount that includes lost revenue, compensation to hundreds of thousands of stranded passengers, and reputational damages. Delta CEO Ed Bastian blamed CrowdStrike for not catching the flawed software in testing: “You can’t come into a mission critical 24/7 operation and tell us we have a bug. It doesn’t work.”  

Delta also accused both CrowdStrike and Microsoft of ignoring calls for help during the crisis. In response, Microsoft defended itself by placing the blame back on the airline for depending on outdated technology. The tech giant said its “preliminary review suggests that Delta, unlike its competitors, apparently has not modernized its IT infrastructure, either for the benefit of its customers or for its pilots and flight attendants.” That could mean Delta was using a competitor’s service when the outage happened, making it harder for Microsoft to fix the problem involving its software. Microsoft hopes this difference will prevent the company from being held legally responsible to Delta for hundreds of millions of dollars in damages from the mass flight cancellations.

Questions:

1. Should Crowdstrike and Microsoft be held responsible for Delta’s problems during the recent tech outage? Why or why not?
2. Do you think Delta’s IT infrastructure was prepared for a major outage? How can other businesses stay prepared and resilient against similar tech failures?

Source: Niraj Chokshi, “Microsoft Says Delta Was Largely Responsible for Flight Cancellations,” The New York Times, August 6, 2024.