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CrowdStrike and Azure: Why Was China Unaffected by the Worldwide Outage?

Global banks, airlines, hospitals, businesses, and government offices experienced a massive outage last week. 

What happened?

During a standard update to its security software CrowdStrike Falcon, the US cybersecurity firm pushed an update worldwide. This single faulty software update significantly impacted companies worldwide, especially those using Windows operating systems and Microsoft Azure cloud systems.

HIGHLIGHTS

    • Global Impact: Major disruption across banks, airlines, hospitals, and more.
    • Microsoft Blamed: Initial blame due to widespread Blue Screen of Death (BSOD) issues.
    • Real Culprit: CrowdStrike’s faulty update caused a logic error, leading to the outage.
    • China’s Escape: Minimal impact in China due to different cybersecurity dynamics.
    • Key Factors why China Wasn’t badly Affected:
      • CrowdStrike’s Limited Use: CrowdStrike and SentinelOne have limited local presence.
      • Local Cloud Dominance: Microsoft Azure has a small market share in China, where AliCloud, Huawei, and Tencent are market leaders.
      • Effective Local Cybersecurity Solutions: Companies in China rely on locally developed cybersecurity solutions.

Understanding the Outage

Many blamed Microsoft for the disaster because it is the most recognizable brand. Users saw the infamous BSOD (Blue Screen of Death) on their devices, making it easier to connect the issue with Microsoft rather than CrowdStrike.

However, the reality is more complex. According to Microsoft’s official announcement, their Azure machines were affected by the update from their cybersecurity vendor, CrowdStrike. CrowdStrike’s analysis revealed that a sensor configuration update to Windows systems triggered a logic error, resulting in a system crash and BSOD on impacted systems. CrowdStrike’s detailed analysis outlined how this configuration update caused the problem.

Why Was China Less Affected?

Interestingly, China was not as affected as the rest of the world. The primary reason is that CrowdStrike is not widely used in China. Some MNCs and large Chinese companies faced issues, but the country was relatively unscathed. No state-owned enterprises (SOEs) seemed affected, and significant local private businesses were safe.

Reasons for Limited Impact in China

1.  Cybersecurity Threats and Market Presence: CrowdStrike has been vocal about the cybersecurity threat posed by Beijing, leading to its limited presence in China. CrowdStrike and SentinelOne, another major player in the cybersecurity market, are banned from selling directly in China and do not support the Chinese market. This has led to a reliance on local cybersecurity solutions tailored to meet local requirements.

2.  Microsoft Azure’s Market Share: While Microsoft Azure dominates the global cloud market, it is not a significant player in China. Operated through a local JV partner (21Vianet), Azure’s market share is almost irrelevant compared to AliCloud, Huawei, and Tencent. Because of this, Microsoft doesn’t have the same processes in China as it does worldwide, and it’s not fully managing, deploying, and running the cybersecurity posture.

3.  Local Cybersecurity Solutions: Local cybersecurity players have developed solutions that better fit the Chinese market, especially for local SOEs, hospitals, airports, and transportation services. This localization prevented the massive public service meltdowns seen worldwide.

Could the Outage Have Been Prevented?

Whenever relevant software receives important updates, the best practice is to create and use sandboxed solutions first, move to limited teams in production, and then go with a staggered full deployment. These steps can mitigate the risk of widespread issues.

Detailed Examination of Preventive Measures

An effective preventive measure would include rigorous testing in a controlled environment. This would involve simulating real-world conditions to identify potential failures before rolling out updates globally. Additionally, phased rollouts can help isolate and address issues on a smaller scale before they escalate.

For instance, implementing a multi-layered testing protocol ensures that any update undergoes several validation stages. Initial testing in a sandbox environment can catch obvious flaws, while subsequent limited deployments can reveal more subtle issues under actual operating conditions. Only after these steps should a full-scale deployment occur.

Effects and Predictions for China

Some global and local IT companies capitalized on this outage to promote their tech stacks. However, no one could have predicted or prevented this specific incident. It could have happened to any cybersecurity vendor with a broad reach. Microsoft estimates that 8 million Windows machines were affected.

CrowdStrike remains a top player worldwide for medium and large companies. This incident was a misstep, but it does not diminish the quality of its solutions. CrowdStrike’s remediation plan includes a detailed outline of its actions and admissions of its process failure.

Future of Cybersecurity in China

Software and hardware solutions will continue to be localized for Chinese customers. CrowdStrike and similar companies will not operate or support the Chinese market, and local vendors will not sell it legally. Local players have developed effective cybersecurity solutions for the local market.

Global companies in China will continue to standardize their environments, using a mix of international and local solutions. CrowdStrike will likely improve its deployment processes; others will learn from this incident.

Balancing Global and Local Solutions

The key for global companies operating in China is balancing international standards with local adaptations. While global solutions like CrowdStrike may provide consistency, incorporating local cybersecurity measures ensures compliance with regional regulations and addresses specific local threats more effectively. This dual approach can enhance overall security posture and operational resilience.

Conclusion

The CrowdStrike and Microsoft outage highlighted the importance of robust deployment processes and the benefits of localized solutions. While some Chinese users enjoyed an early vacation due to the BSOD, the incident serves as a reminder of the critical role of cybersecurity in maintaining business continuity. 

As the cybersecurity landscape evolves, so must companies’ strategies. Learning from such incidents and improving deployment protocols can help mitigate future risks. This approach is crucial for maintaining business operations and safeguarding trust and reliability in a connected world.

On a lighter note, a few Chinese Weibo users enjoyed an extended weekend due to the BSOD (blue screen of death) and posted, “Thank you, Microsoft, for an early vacation”. 

There’s always a positive way to spin things!

About JET IT Services

JET helps businesses in China overcome IT challenges with reliable, compliant, and secure solutions. From network optimization to cybersecurity, we ensure your IT systems run smoothly so you can focus on what matters most—growing your business!

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