Delta CEO says CrowdStrike-Microsoft outage cost the airline $500 million

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Delta CEO says CrowdStrike-Microsoft outage cost the airline $500 million
cnbc.com
  • Delta Air Lines CEO Ed Bastian said the massive IT outage earlier this month that stranded thousands of customers will cost it $500 million.
  • The airline canceled more than 4,000 flights in the wake of the outage, which was caused by a botched CrowdStrike software update and took thousands of Microsoft systems around the world offline.
  • Bastian, speaking from Paris, told CNBC’s “Squawk Box” on Wednesday that the carrier would seek damages from the disruptions, adding, “We have no choice.”
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Pretty sure their software’s legal agreement, and the corresponding enterprise legal agreement, already cover this.

The update was the first domino, but the real issue was the disarray of Delta’s IT Operations and their inability to adequately recover in a timely fashion. Sounds like a customer skimping on their lifecycle and capacity planning so that Ed can get just a bit bigger bonus for meeting his budget numbers.

Negligence can make contracts a little less permanent.

Delta was the only airline to suffer a long outage. That’s why I say Crowdstrike is the kickoff, but the poor, drawn-out response and time to resolve it is totally on Delta.

Idk, crowdstike had a few screwups in their pocket before this one. They might be on the hook for costs associated with an outage caused by negligence. I’m not a lawyer, but I do stand next to one in the elevator.

It breaks down once Delta begins arguing costs directly associated with their poor disaster recovery efforts.

Why is CrowdStrike responsible for Deltas poor practices?

Couldn't agree more.

And now that this occurred, and cost $500m, perhaps finally some enterprise companies may actually resource IT departments better and allow them to do their work. But who am I kidding, that's never going to happen if it hits bonuses and dividends :(

We just lost 500 million - we can't afford that right now! /s

According to The headhunters are constantly trying to recruit me for inappropriate jobs it is starting to get traction with companies and they are starting to actually hire fully skilled it departments. Opposed to the ones merely willing to work for near minimum wage which is what they had before.

In some ways it won't really make a difference because fully staffed up I.T departments also needs to be listened to by management, and that doesn't happen often in corporate environments, but still they'll pay the big bucks so that's good enough for me.

According to The headhunters are constantly trying to recruit me for inappropriate jobs it is starting to get traction with companies and they are starting to actually hire fully skilled it departments. Opposed to the ones merely willing to work for near minimum wage which is what they had before.

In some ways it won't really make a difference because fully staffed up I.T departments also needs to be listened to by management, and that doesn't happen often in corporate environments, but still they'll pay the big bucks so that's good enough for me.

I wasn't affected by this at all and only followed it on the news and through memes, but I thought this was something that needed hands-on-keyboard to fix, which I could see not being the fault of IT because they stopped planning for issues that couldn't be handled remotely.

Was there some kind of automated way to fix all the machines remotely? Is there a way Delta could have gotten things working faster? I'm genuinely curious because this is one of those Windows things that I'm too Macintosh to understand.

All the servers and infrastructure should have "lights out management". I can turn on a server, reconfigure the bios and install windows from scratch on the other side of the world.

Potentially all the workstations / end point devices would need to be repaired though.

The initial day or two I'll happily blame on crowdstrike. After that, it's on their IT department for not having good DR plans.

Hell I just did that with what's effectively a black box this morning - if it's critical, it gets done the right way or don't bother doing it at all.

Edit: Bonus unnecessary word

There was no easy automated way if the systems were encrypted, which any sane organization mandates. So yes, did require hands-on-keyboard. But all the other airlines were up and running much faster, and they all had to perform the same fix.

Basically, in macOS terms, the OS fails to boot, so every system just goes to recovery only, and you need to manually enter the recovery lock and encryption password on every system to delete a file out of /System (which isn’t allowed in macOS because it’s read only but just go with it) before it will boot back into macOS. Hope you had those recorded/managed/backed up somewhere otherwise it’s a complete system reinstall…

So yeah, not fun for anyone involved.

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