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Oceania · General news · The Canberra Times

How a single Microsoft outage exposed the fragility of our digital world

Published by The Canberra Times · Australia 1 h ago
Australian businesses are understood to be millions of dollars out of pocket as a result of the Microsoft failure. Picture Shutterstock
Australian businesses are understood to be millions of dollars out of pocket as a result of the Microsoft failure. Picture Shutterstock · The Canberra Times

Detailed summary

System failures expose human vulnerability.

For many decades the human race seems to have been determined to build bigger and better traps for itself. The arrival of the Internet of everything, with almost every conceivable device one could name potentially linked in to the web, has raised the stakes to an unprecedented level.

Society has entered an age where any connected device - from a European commercial refrigerator to a car and potentially even an airliner - can face cyber attacks initiated by hackers and bad actors on the opposite side of the world.

The almost universal connectivity that is now taken for granted has delivered many blessings. But it has also created a minefield because these systems remain fallible, as the latest Microsoft failure demonstrates.

This crisis provides further evidence of the dangers of putting too many technological eggs in one basket. While the Microsoft crash appears to stem from a systems failure rather than a malicious hack, it exposes profound global vulnerabilities, similar to those demonstrated by the recent hacking of Medicare and the Victorian VCE website.

Obviously, developers must build maximum resilience into these networks. Artificial intelligence can assist with this defence, yet bad actors and hackers now deploy AI for their own attacks.

The current Microsoft outage paralysed private and public sectors worldwide, disrupting Outlook, Teams, and Copilot services across 74 countries. The crisis forced New Zealand government agencies to revert to manual processing and caused a Canadian health network to declare a code grey infrastructure failure.

In Australia, the crash affected federal police and spy agencies. Experts calculate the downtime will cost local businesses billions of dollars, with professional service firms losing hundreds of thousands of dollars an hour. Small businesses suffer the most, facing massive revenue losses, debilitating operational backlogs, and an inability to process orders.

Furthermore, without operational firewalls like Microsoft Defender…

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