What is CrowdStrike? Understanding the firm behind recent Microsoft outage

A technical problem, reportedly connected to U.S.-based cybersecurity firm CrowdStrike, led to disruptions in computers running Microsoft software across Australia and beyond today. 

Impact of the global outage 

• The widespread outage affecting numerous worldwide companies and government agencies. 

• Many computers attempted to restart and displayed blue-screen error messages. 

Understanding CrowdStrike 

What is CrowdStrike? 

• CrowdStrike is an American cybersecurity firm that helps companies manage their security in “IT environments”– everything that uses an internet connection. 

Primary functions 

• Protect companies and prevent data breaches, ransomware, and cyber attacks. 

• Serves major clients including global investment banks, universities, and the Australian betting agency TAB Corp. 

Changes in the cybersecurity environment 

• The cybersecurity landscape has evolved rapidly with an increase in threat actors targeting large businesses, such as Ticketmaster, Medibank, and Optus. 

• More companies are turning to firms like CrowdStrike to protect their customers’ information. 

CrowdStrike’s main product: Falcon 

What is CrowdStrike used for? 

• One of CrowdStrike’s key products is CrowdStrike Falcon. 

• According to the company’s website, Falcon provides “real-time indicators of attack, hyper-accurate detection, and automated protection” from cybersecurity threats. 

Recent incident 

• Thousands of companies globally use CrowdStrike Falcon to protect data. 

• A crash of CrowdStrike’s server on Friday is believed to have caused the global Microsoft software outage. 

Recent update 

• Earlier this week, CrowdStrike announced an update to its Falcon product, promising “unprecedented speed and precision” in detecting security breaches. 

• In a statement following the outage, a CrowdStrike spokesperson indicated that the issue likely stemmed from the Falcon product. 

Ownership of CrowdStrike 

Founding and ownership structure 

• CrowdStrike was founded in 2012 by George Kurtz, a former McAfee employee. 

• The company’s ownership is a mix of individual investors, institutions, and retail investors. 

Major investors 

• Approximately 40% of the company is owned by institutional investors, while about 57% is owned by public companies and individual investors. 

• The largest shareholder is The Vanguard Group, a U.S. investment fund, holding about 6.79% of the company.