In an ever-evolving digital landscape, the importance of robust IT infrastructure cannot be overstated.

Recent events have underscored this – none more so than the CrowdStrike and Optus outages.

These incidents sent shockwaves through businesses. Their impact was felt by industries that rely on seamless digital operations. This includes construction.

The CrowdStrike Outage

On July 19, my phone was filling up with messages.

“Has CrowdStrike hit your clients”, “You must be busy!”, “Are you OK?”. These and 89 more messages rolled in.

As the owner of an IT Managed Service Provider, people naturally thought that we were in the thick of it. Fortunately for me, it was like the outage didn’t exist! We support a superior product that thankfully hasn’t caused any outages.

For many others, however, the pain was significant.

It highlighted the importance of robust IT infrastructure and cybersecurity measures. The outage left many businesses vulnerable, leading to project delays, financial losses, and operational challenges.

The CrowdStrike outage was caused by a faulty software update to its Falcon Sensor security software. This update led to the crash of approximately 8.5 million Microsoft Windows systems worldwide. The financial impact was substantial. Estimates suggest that it cost the global economy at least $10 billion USD. Healthcare and banking were particularly hard hit, with estimated losses of $1.94 billion and $1.15 billion respectively. Also affected were airlines, airports, banks, hotels, hospitals, manufacturing, stock markets, broadcasting, petrol stations, retail stores, and more.

For construction firms, the event serves as a reminder about the importance of reliable IT systems and effective cyber security in order to maintain operations and meet project deadlines. The outage disrupted services. This led to project delays, financial losses, and a cascade of operational headaches.

Optus Outage

In comparison, last year’s Optus outage disrupted businesses and services across Australia. It highlighted the importance of robust IT infrastructure and telecommunications reliability. The outage left many businesses and services vulnerable, leading to operational challenges and financial losses.

The Optus outage was caused by a routine software change to its network. This change led to a collapse of approximately 10.2 million mobile and broadband services. The financial impact was substantial, with businesses across various sectors experiencing significant disruptions.

The economic cost was felt by around 400,000 businesses who rely on telecommunications services provided by Optus.

The construction industry was also affected. Many construction firms rely on Optus for communication and coordination on job sites. The outage led to delays in project timelines as workers were unable to communicate with teams and suppliers. For instance, a major construction project in Sydney experienced a halt in operations for several hours, leading to a delay in the project completion date and increased costs.

Overall, the Optus outage serves as a wake-up call for businesses and services to ensure they have robust IT infrastructure and contingency plans to mitigate the impact of such disruptions.

Predicting the Next Meltdown

Looking ahead, the next global IT meltdown could potentially stem from increasingly sophisticated cyberattacks.

Potentially, these may target not only individual companies but also entire sectors. They could involve coordinated ransomware attacks and may disrupt supply chains and cripple critical infrastructure. With the rise of IoT (Internet of Things) and interconnected systems, stakes are higher than ever.

Maximizing IT Resilience

From an IT perspective, firms can adopt several measures to maximise their resilience in the face of the next IT meltdown.

These are:

• Invest in Cybersecurity. Regularly update and patch systems, conduct penetration testing, and employ multi-layered security approaches.
• Implement Redundancy. Ensure that backup systems are in place and that there are clear disaster recovery protocols.
• Undertake Employee Training. Regularly train employees on cybersecurity best practices, recognizing phishing attempts, and other threats.
• Ensure Robust IT Infrastructure. Ensure that IT infrastructure is robust and can handle unexpected disruptions.
• Ensure Telecommunications Reliability. Ensure that telecommunications services are reliable and have contingency plans in place.

Broader Business Strategies

Beyond technology, companies should look at broader strategies that encompass business management, financial planning, and operational resilience.

These include:

• Diversifying Supply Chains. Avoid reliance on a single supplier and build relationships with multiple vendors.
• Improving Financial Resilience. Maintain a reserve fund to manage unexpected disruptions and invest in insurance policies that cover cyber incidents.
• Maintaining Operational Flexibility. Develop flexible operational strategies that can pivot in response to disruptions.
• Improving Communication and Coordination. Ensure effective communication and coordination among teams and suppliers, especially in industries like construction.

The next global IT meltdown may be inevitable. With sensible measures and foresight, however, its impact upon your organisation can be mitigated.

By learning from past incidents and implementing strong resilience measures, companies can navigate future challenges with greater assurance.

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