Global Impact of CrowdStrike Outage Highlights Need for Robust Cybersecurity Solutions and Innovative Technologies

Global Impact of CrowdStrike Outage Highlights Need for Robust Cybersecurity Solutions and Innovative Technologies
Image credit: The New Arab

On Friday morning, Windows users worldwide were met with "blue screens of death" (BSOD) due to a faulty software update from CrowdStrike. This glitch led to global disruptions, affecting airlines, hospitals, banks, and more. Amidst the chaos, some see an opportunity for innovation in technological infrastructure.

The widespread outage underscores the world's heavy reliance on technology. Venture capitalists view this as a chance to develop new technologies that can prevent such incidents. In 2024, a single software bug causing global havoc is unacceptable, highlighting the need for startups and venture capital to drive innovation.

Reid Christian, a general partner at CRV, points out that the issue wasn't a cybersecurity event but a failure in deploying properly tested software. CRV is investing in Fleet, a cybersecurity and IT management startup that monitors vendor instances on endpoints. While it's unclear if mobile device management (MDM) software like Fleet could have mitigated this specific issue, Christian emphasizes the need for additional protections when granting deep system access to software vendors.

Fleet's co-founder and CTO, Zach Wasserman, notes that their security software operates outside the kernel to maintain system stability. The CrowdStrike problem stemmed from a faulty Windows kernel-level driver, which has significant access to the operating system's core. Guru Chahal of Lightspeed Venture Partners suggests that cybersecurity applications operating outside the kernel, such as Wiz and Oligo Security, might gain popularity following this disaster.

Oligo Security uses sandboxing, which avoids direct kernel access, potentially preventing similar issues. However, the Windows security industry may need to explore sandboxed systems more thoroughly. Despite increased attention on Wiz due to Google's $23 billion acquisition deal, Wiz board member Gili Raanan stresses that the incident has heightened scrutiny across the entire security ecosystem.

Logan Allin, founder of Fin Capital, sees a growing need for cloud observability companies. As businesses become more dependent on external APIs and integrate AI solutions, the risk of buggy software updates increases. Companies like Middleware ensure API integrations remain stable, preventing disruptions.

This incident highlights the urgent need for updated technology, particularly in older sectors like finance and healthcare. VCs like Allin and Chahal predict a surge in startups offering non-invasive runtime security solutions to avoid kernel-level issues in the future.

In summary, while the CrowdStrike outage has caused significant disruptions, it also presents an opportunity for innovation in cybersecurity and IT management. The event underscores the critical need for robust, well-tested technological solutions to safeguard against future incidents.