Microsoft outage: CrowdStrike update to cost US Fortune 500 firms $5.4 billion, report says

livemint.com:

CrowdStrike's July 19 update is estimated to cost $5.4 billion to the US Fortune 500 companies, according to the insurer Parametrix reporter, The Guardian reported on July 24 (BST) as the cybersecurity firm announced to make changes in its system to prevent such a crash from happening again.The estimated financial losses exclude those of Microsoft, whose systems suffered a global operation failure after the update. Sectors like Banking, Healthcare and major airlines, are expected to experience the most impact, according to the insurer Parametrix quoted in the report.According to the report, the total insured losses for non-Microsoft Fortune 500 companies are likely to range from $540 million to $1.08 billion.Multiple industries are struggling to recover from the damage caused by the Crowdstrike outage, which failed payment systems, grounded airlines, and caused a crisis in hospitals.

According to the report, experts describe it as the largest IT failure in history.The situation on July 19 also showed the world how modern technology systems are built on risky grounds, and one faulty code in a single update can bring down global operations, the report said.CrowdStrike is a multibillion-dollar technology company that has lost nearly 22 per cent of its market value on Wall Street since the system failure. The company has apologized for causing the international software outage, releasing a report on Wednesday stating what caused the incident in the update.“A Rapid Response Content update for the Falcon sensor was published to Windows hosts running sensor version 7.11 and above.