In response to a global IT outage triggered by a faulty software update, Microsoft Corp. (NASDAQ:MSFT) has announced plans to host a cybersecurity summit on Tuesday.

What Happened: The summit marks Microsoft's initial significant step towards addressing the issues that disrupted operations across multiple industries, impacting nearly 8.5 million Windows devices on July 19. The software update that caused the outage was provided by CrowdStrike Inc. (NASDAQ:CRWD), Reuters reported on Tuesday.

The summit will be held at Microsoft's headquarters in Redmond, Washington, and will include participation from invited government representatives.

Why It Matters: The July outage underscored the risks of relying on a single vendor for security solutions and raised questions about many organizations' preparedness to implement contingency plans in the event of a system failure. The outage affected a wide range of industries, from major airlines to banks and healthcare.

The outage led Microsoft to reconsider its security frameworks, particularly the access granted to third-party security applications. The company is now contemplating measures to restrict kernel-level access for these applications, which could alter how security software interacts with Windows operating systems and help prevent future breakdowns.

The escalating cybersecurity threats companies face and the challenge of balancing budget constraints with the need to safeguard their digital infrastructure. The cost of a data breach has risen 10% year over year, increasing the financial burden on businesses. Despite these rising costs, cybersecurity remains a critical area of investment for companies.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari