The global IT outage, which has been attributed to a software update from cybersecurity firm CrowdStrike Holdings Inc. (NASDAQ:CRWD), has been described as the "largest IT outage in history," impacting computer systems running on Microsoft Corp.'s (NASDAQ:MSFT) Windows operating system and cloud services.

What Happened: The Microsoft-CrowdStrike incident has affected businesses worldwide, including airlines, banks, media, and even 911 services, and has highlighted the extent of our reliance on a few key companies.

Microsoft's cloud services were also affected, resulting in the grounding and cancellation of flights for several airlines.

Microsoft reported issues with its cloud services in the Central U.S. region, which impacted the operations of several airlines. The outage led to the grounding and cancellation of flights for several airlines.

While Microsoft's cloud services have since been restored, the incident has raised concerns about the extent of our dependence on a few key companies.

Security researcher Troy Hunt described it as the "largest IT outage in history," especially since tech companies managed to avoid the "Y2K" issue.

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Overdependence On Few Companies: The widespread outage caused by this incident also shows how much the world's critical infrastructure depends on companies like Microsoft and CrowdStrike.

"You're starting to see more instances where a mistake happens, it cascades, and then all of a sudden, the public is going to feel it, whether it's a canceled medical procedure or their flight stuck on the tarmac," Chris Cummiskey, CEO of Cummiskey Strategic Solutions and a former official with the U.S. Department of Homeland Security, told Business Insider.

According to Statista, the Windows operating system accounts for 72% — or 3 out of every 4 computers in the world – while Apple's macOS has a 15% share. This is one of the reasons why the Microsoft-CrowdStrike issue had such a large-scale impact on business across industries.

Why It Matters: The outage has underscored the potential risks associated with the world's reliance on a few key companies for critical services. The incident has affected a wide range of industries, including healthcare, finance, and transportation, raising concerns about the potential impact of such widespread reliance.

CrowdStrike is a cybersecurity company based out of Austin, Texas. It provides cloud protection and endpoint security services and is deployed on the computer systems of a large number of organizations around the world, as Friday's IT outage has shown.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.