Microsoft Responds to Delta’s Claims of $500 Million Loss from Tech Outage

Microsoft Responds to Delta's Claims of $500 Million Loss from Tech Outage

Microsoft is joining cybersecurity software firm CrowdStrike in fighting back against Delta Air Lines, which blames the companies for causing several thousand canceled flights following a technology outage last month.

A lawyer for Microsoft said Tuesday that Delta’s key IT system is probably serviced by other technology companies, not Microsoft Windows.

“Your letter and Delta’s public comments are incomplete, false, misleading, and damaging to Microsoft and its reputation,” Microsoft lawyer Mark Cheffo said in a letter to Delta attorney David Boies.

Cheffo said Microsoft was trying to determine “why other airlines were able to fully restore business operations so much faster than Delta.”

The comments represent an escalating fight between the tech companies and the Atlanta-based airline.

Delta CEO Ed Bastian said last week that the global technology outage that started with a faulty upgrade from CrowdStrike to machines running on Microsoft Windows cost the airline $500 million. Bastian raised the threat of legal action.

On Tuesday, Delta said it has a long record of investing in reliable service including ”billions of dollars in IT capital expenditures” since 2016 and billions more in annual IT costs. It declined further comment.

CrowdStrike has also disputed Delta’s claims. Both it and Microsoft said Delta had turned down their offers to help the airline recover from the outage last month. Microsoft’s lawyer said CEO Satya Nadella emailed Bastian during the outage, but the Delta CEO never replied.

In a recent statement, Microsoft has responded to Delta Airlines’ claims of a $500 million loss due to a tech outage that occurred earlier this year. The airline had blamed the outage on a failure in Microsoft’s Azure cloud computing platform, which caused widespread disruptions to its operations.

Microsoft has acknowledged the impact of the outage on Delta’s business and expressed regret for any inconvenience caused. However, the tech giant has refuted Delta’s claims that the outage was solely due to a failure in Azure. In a statement, Microsoft explained that the outage was caused by a combination of factors, including human error and a software bug that affected multiple customers, not just Delta.

The company also highlighted its commitment to ensuring the reliability and security of its cloud services, stating that it has taken steps to prevent similar incidents from occurring in the future. Microsoft has stated that it is working closely with Delta to address any concerns and ensure that the airline’s operations are not disrupted in the future.

Delta Airlines has yet to respond to Microsoft’s statement, but the airline has previously stated that it is exploring all options to recover the losses incurred as a result of the tech outage. The $500 million figure represents the estimated impact of the outage on Delta’s revenue and operational costs.

The incident serves as a reminder of the potential risks associated with relying on cloud computing services for critical business operations. While cloud services offer numerous benefits, including scalability and cost efficiency, they also come with inherent risks, such as service outages and data breaches.

Both Microsoft and Delta will need to work together to address the fallout from the tech outage and ensure that similar incidents are prevented in the future. It remains to be seen how this incident will impact the relationship between the two companies and whether any legal action will be taken to resolve the issue.

Overall, the incident highlights the importance of robust contingency plans and risk management strategies when relying on cloud services for critical business operations. As more companies move towards cloud-based solutions, it is essential for organizations to carefully assess the risks and benefits of these technologies and implement appropriate measures to mitigate potential disruptions.

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