In a recent interview with CNBC, Delta Air Lines CEO Ed Bastian raised eyebrows when he questioned the reliability of major tech platforms, particularly in light of a significant outage that impacted numerous companies utilizing Microsoft systems. This incident, which occurred on July 19, resulted in Delta canceling over 5,000 flights during a single weekend, necessitating compensation for affected customers and the labor-intensive task of resetting more than 40,000 servers.
Bastian characterized Delta’s collaboration with Microsoft as “probably the most fragile platform,” highlighting a growing concern among industry leaders. As major tech firms pivot towards generative AI and other advanced technologies, Bastian emphasized the need for these companies to reinforce their existing systems rather than solely focusing on future innovations.
Concerns and Consequences
The aftermath of the outage has not only left Delta grappling with operational challenges but has also sparked discussions about accountability. CrowdStrike, the cybersecurity firm involved, has opted to offer “free consulting advice” as a remedy, a move that may not sit well with all affected parties. Notably, Delta was not included in the list of companies receiving a Uber Eats card as compensation, raising questions about the adequacy of CrowdStrike’s response.
Furthermore, the incident has led to potential legal ramifications for CrowdStrike. Shareholders have initiated a proposed class action lawsuit, alleging that CEO George Kurtz made “false and misleading” statements regarding the software’s validation and testing processes. They claim that the level of scrutiny applied to Rapid Response Content updates was not consistent with that of other updates, thus undermining the trust placed in the company’s assurances.
While Bastian has expressed admiration for Apple’s operational integrity, he pointed out a crucial distinction between the tech giants. A spokesperson for Microsoft clarified to The Wall Street Journal that due to a legal understanding with the European Commission, it cannot restrict kernel access to third-party developers in the same manner as Apple. This understanding arose from a complaint alleging that Microsoft was limiting access in a way that hindered competition.
As the tech landscape continues to evolve, the implications of these outages and the responses from major players like Microsoft and CrowdStrike will be closely monitored by industry stakeholders and consumers alike.
