A technical issue related to a US-based cybersecurity firm named CrowdStrike caused computers running Microsoft software across Australia and abroad to glitch on Friday.

The global outage impacted a raft of Australian companies and government agencies, causing many computers to attempt to restart and display a blue-screen error message.

Here’s what we know so far.

What is CrowdStrike?

CrowdStrike is a US-based cybersecurity firm that helps companies manage their security in “IT environments” — that is, everything they use an internet connection to access.

Its primary function is to protect companies and stop data breaches, ransomware and cyber attacks.

It includes among its main customers global investment banks, universities and even the Australian betting agency TAB Corp.

The cybersecurity environment has changed rapidly in recent years due to the increased presence of threat actors targeting big business, including Ticketmaster, Medibank and Optus.

As a result, more and more companies are turning towards firms like CrowdStrike to protect their customers’ information.

What is CrowdStrike used for?

One of the company’s main products is CrowdStrike Falcon, which is described on its website as “providing real-time indicators of attack, hyper-accurate detection and automated protection” from possible cybersecurity threats.

CrowdStrike Falcon is used by thousands of companies across the world to protect data, and a software update released on Friday caused a global outage of Microsoft products.

Earlier this week, CrowdStrike announced an update of its Falcon product, saying it would provide “unprecedented speed and precision” to detect security breaches.

In a statement posted to its website following the outage, a CrowdStrike spokesperson said it was likely an issue with the Falcon product that caused the incident.

Who owns CrowdStrike?

The company was founded by former McAfee employee George Kurtz in 2012.

Its ownership structure is a mix of individual investors, institutions and retail.

The company’s stock is broken down into two large investor categories. About 40 per cent is owned by institutional investors, and about 57 per cent is owned by public companies and individual investors.

The investor with the largest share is The Vanguard Group, a US investment fund, with about 6.79 per cent of the company.

The question of who owns CrowdStrike was part of a discredited conspiracy theory after the company investigated Russia’s role in the 2016 US elections.

Former US president Donald Trump made reference to the conspiracy theory in a call with Ukrainian President Volodymyr Zelenskyy in 2019.

“I would like to find out what happened with this whole situation with Ukraine, they say CrowdStrike. I guess you have one of your wealthy people,” he said.

“The server, they say Ukraine has it … you or your people, and I would like you to get to the bottom of it.”

What’s next for the company?

Developer websites have already begun posting workarounds for the issue, and CrowdStrike the company offered a solution on its members-only platform until the incident resolves.

CrowdStrike CEO George Kurtz released a statement on X on Friday evening, saying the outage was caused by a “defect” in a content update for Microsoft users.

He stressed it was not caused by a cyber attack.

Earlier, Reuters said those who phoned the company were met with a pre-recorded message.

“Thanks for contacting CrowdStrike support. CrowdStrike is aware of reports of crashes on Windows … related to the Falcon sensor.”

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