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Global IT outage hits Microsoft cloud, automotive industry faces disruptions

Ines Lin and Jerry Chen, DIGITIMES Asia, Taipei 0

Credit: AFP

Microsoft faced a significant disruption in its cloud services on July 19, leading to temporary system outages in major organizations around the world. In a statement, the company attributed the incident to a software update from cybersecurity firm CrowdStrike, which affected 8.5 million Windows devices, representing less than 1% of the total.

Microsoft announced it will collaborate with other cloud service providers, including Google Cloud and AWS, to share insights and explore effective solutions.

Did the outage cripple the automotive supply chain?

According to a report by Business Insider on July 19, the global IT system outage forced Tesla to halt production lines in Texas and Nevada. An internal email obtained by Reuters indicated that Tesla informed employees on the morning of the 19th that the company's "Windows servers, laptops, and manufacturing equipment are currently down, with users seeing blue screens on their devices."

Microsoft CEO Satya Nadella addressed the issue on social media platform X (formerly Twitter), stating, "Yesterday, CrowdStrike released an update that began impacting IT systems globally. We are aware of this issue and are working closely with CrowdStrike and across the industry to provide customers with technical guidance and support to safely bring their systems back online."

Elon Musk responded to Nadella's post, noting that the outage "gave a seizure to the automotive supply chain".

According to the Wall Street Journal, auto parts supplier Magna International, which produces various products from automotive electronic systems to car bodies, reported experiencing operational disruptions due to the service outage. A company spokesperson stated that Magna is working with customers and suppliers to minimize the impact.

Toyota Motor Company indicated that some dealerships experienced issues, but its North American manufacturing plants and headquarters were unaffected, partly due to routine summer shutdowns.

A Nissan Motor spokesperson said the company's systems were not impacted, but some suppliers and dealers were affected, although specifics were not provided. Ford Motor Company stated it is assessing the impact on its business.

Other automakers and dealerships told the WSJ that the CrowdStrike incident had limited or no impact on their operations.

Securing the IT ecosystem

Steps taken in response to the incident include ongoing collaboration with CrowdStrike to develop automated solutions, deploying hundreds of Microsoft engineers and experts to assist customers in restoring system services, partnering with other cloud service providers like Google Cloud and AWS to share observations and communication information, and quickly releasing relevant documentation and guidance.

Microsoft emphasized that while software updates can occasionally cause unforeseen issues, an event as significant as the recent CrowdStrike incident is exceedingly rare.

Preliminary estimates suggest that the CrowdStrike update affected 8.5 million Windows devices, less than 1% of all Windows devices. Despite the small percentage of Windows devices with CrowdStrike installed in the grand scheme of the total, the incident had widespread economic and social impacts. The incident highlighted many businesses' reliance on CrowdStrike for critical services.

Microsoft underscored the importance of focusing on the ecosystem's influence, noting that the incident demonstrated the tight interconnectivity within its broad ecosystem, including global cloud service providers, software platforms, cybersecurity firms, software vendors, and customers.

The current situation also serves as a reminder of the importance of robust security measures and disaster recovery planning for every member of this technological ecosystem.