Business
Column: The CrowdStrike meltdown reminds us that the hacking problem doesn't come only from outside
Just last Wednesday, I posted a column reporting how our richest corporations, through sheer miserliness and profit-seeking, left millions of Americans vulnerable to technological attacks on their privacy and welfare.
I failed to raise one important question: What if the attacks come from inside the house?
That’s exactly what happened Friday. An ineptly designed update to a program rolled out by the cybersecurity company CrowdStrike and installed automatically on users’ machines instantly crashed millions of computers running Microsoft programs and left them disabled until manual fixes could be undertaken. Some haven’t been fixed yet.
Crowdstrike seemingly borrowed Boeing’s approach to quality control.
— Business blogger Ed Zitron
The fallout reached worldwide and affected people across the modern technological landscape. Thousands of flights were canceled. Doctors couldn’t perform surgeries. Banking transactions were frozen. Emergency 911 lines went silent.
The affected computers displayed what Microsoft Windows users know as the dreaded “blue screen of death.” Typically, this is a baby-blue screen bearing the message that Microsoft’s operating system hadn’t loaded correctly and the machine should be restarted.
That didn’t work this time: The errant CrowdStrike application was burrowed so deep within the Microsoft operating system — as it’s designed to do — that every time a machine restarted, it ran into the same glitch and went dead again in an infinite doom loop.
The CrowdStrike program — irony of ironies — is an anti-hacking application that identifies hacking attempts and fights them off. In the cat-and-mouse game pitting computer users against hackers, such applications have to be updated regularly. They reside in the bowels of the operating system, because in order to be effective, they have to load before almost any other function.
In this case, a coding error in the update delivered an order to the operating system that caused the system to shut down.
That’s a simplified explanation of what happened. Now let’s look at the lessons this episode teaches us — if we’re willing to learn them.
They have to do with our complacency about our dependence on digital systems, including those distributed by developers we’ve never heard of (CrowdStrike, for instance).
What few people are aware of as they go about their lives is how much crucial digital infrastructure is based on Microsoft programs and applications, and how much of those are supplemented by third-party programs and applications.
All of this must work together to work smoothly — or to appear to work smoothly. Here and there something goes wrong, but its ramifications are sufficiently constrained that it can be rectified quickly, and even invisibly.
A great deal of it, furthermore, is automated; it’s designed to run with a minimum of human intervention. In the view of the IT departments that are expected to monitor all this, humans are perpetual money pits — they need days off, get sick, demand raises, quit and must be replaced by newbies needing training, etc., etc. By comparison, machines look like a one-time capital expense — set it and forget it, is the goal.
Microsoft is the hub of these networks because Microsoft made them its business. It created an open architecture for third-party developers to piggyback on; the fundamental idea was that by extending the system’s capabilities, those other developers made Microsoft’s central system more valuable. Microsoft either outsourced some functions to independent developers, or allowed them to design applications that competed with Microsoft’s versions — but those still were designed to work with Microsoft operability.
Among those developers is Austin, Texas-based CrowdStrike, one of countless firms offering cybersecurity services to Windows users. (Microsoft’s own cybersecurity suite is known as Defender.)
Apple computers and devices don’t have the same vulnerabilities because that company does almost all its extensions in-house, and keeps a very close eye on what it allows to interact with its software and hardware; the company doesn’t allow outside applications to interact with its operating system at the fundamental level available with Microsoft’s systems.
But Apple doesn’t have anywhere near as large a footprint in enterprise services as Microsoft. A report issued in March by the government’s Cyber Safety Review Board about a major hacking intrusion into Microsoft’s cloud system in March 2023 asserted that the company’s “ubiquitous and critical products … underpin essential services that support national security, the foundations of our economy, and public health and safety.”
Anyone living in the modern world has to confront the drawbacks of our reliance on digital technology on almost a daily basis. In prehistoric days, back when our household appliances were mechanical or electric, not electronic, a breakdown was easy to diagnose and fix — switch out a tube or tighten a screw.
When a device ceases to function today, it’s often impossible to pinpoint the fault — did my TV go bad, or did the internet go down, or was it just the channel I was watching?
Yet many of us rely on a single company for multiple services. For example, I get my home phone service, broadband internet, and television/video (broadcast and cable channels and streaming) from a single provider. I don’t have much choice, since for most of these it’s the only provider in my neighborhood. But when it goes down, everything goes down.
That provider, Spectrum, has tried to sell me on its mobile phone service too. I’ve refused, because I figure I need at least one thread of access to the outside world that isn’t dependent on its all-in-one monopoly.
Microsoft’s near-dominance of cloud computing — the ecosystem through which all those enterprise computers that went dead last week communicate with each other and with the outside world — should make all of us queasy, because the company’s cybersafety record is atrocious.
The Cyber Safety Review Board investigation concluded that the March 2023 hack occurred because “Microsoft’s security culture was inadequate and requires an overhaul, particularly in light of the company’s centrality in the technology ecosystem and the level of trust customers place in the company to protect their data and operations.”
The board mentioned, among other things, a “cascade of … avoidable errors” in the company’s cybersecurity program, its failure to detect the compromise by hackers of its own “cryptographic crown jewels,” but only acted after a customer — the U.S. State Department — discovered the incursion itself.
The board found that Microsoft’s security practices were inferior to those of “other cloud service providers.” The report mentioned Amazon, Google and Oracle as Microsoft rivals in cloud services with better security systems.
Microsoft pledged to “adopt a new culture of engineering security in our own networks” and said it had “mobilized our engineering teams to identify and mitigate legacy infrastructure, improve processes, and enforce security benchmarks.”
The CrowdStrike crash suggests that those efforts are still works in progress. It’s fair to say that much of the blame belongs to CrowdStrike, which allowed an update to a crucial application to be sent to users for automatic installation without doing the testing necessary to ensure that the update was operationally bulletproof.
Technology blogger Ed Zitron properly tied the disaster to the financialization of Big Business generally, in which pumping ever higher profits to shareholders becomes a higher priority than ensuring that one’s products meet quality standards.
“Crowdstrike seemingly borrowed Boeing’s approach to quality control,” Zitron wrote, “except instead of building planes where the doors fly off at the most inopportune times (specifically, when you’re cruising at 35,000ft), it released a piece of software that blew up the transportation and banking sectors, to name just a few.”
CrowdStrike Chief Executive George Kurtz moved promptly to “sincerely apologize” to all affected users, via a statement and an appearance on the NBC “Today” show. “We quickly identified the issue and deployed a fix, allowing us to focus diligently on restoring customer systems as our highest priority,” Kurtz said in a posting on the company’s website.
Microsoft placed the blame chiefly on CrowdStrike. “Although this was not a Microsoft incident, given it impacts our ecosystem, we want to provide an update on the steps we’ve taken with CrowdStrike and others to remediate and support our customers,” David Weston, a vice president for enterprise and security, wrote on the company’s website.
But Microsoft, plainly, failed to take on board the necessity of vetting every piece of third-party software that could have an effect on its own customers — before it blew up their computer systems.
No software system is immune from errors, especially now that they’re so complex and multilayered that not even their developers may know all their weak spots. (An error at Amazon’s cloud service incapacitated as many as 150,000 websites for several hours in February 2017 — a major problem, but not nearly on the scale of the CrowdStrike crash.)
But as these systems play an ever expanding role in modern life even as they become more complex, it’s incumbent on their providers to make security and safety their top priorities, not merely mouth the concept in marketing material without actually taking it seriously.
Cloud clients also need to pay more attention to what is getting automatically inserted into their systems. Who has the right to gloat over escaping the CrowdStrike meltdown last week? Amusingly, it’s Southwest Airlines. For decades, Southwest resisted Microsoft’s urgings that it upgrade its systems to the latest versions of Windows, relying on Windows 3.1, which is 32 years old — so antique that the CrowdStrike update wouldn’t even work on the airline’s systems.
So while affected carriers such as Delta, United and American had canceled nearly 2,400 flights by 6 p.m. Friday, Southwest had canceled three. (By midday Monday, the number of canceled flights reached beyond 12,300.) That doesn’t mean that Southwest gets everything right. After all, the airline suffered more than its competitors from the ferocious storm in December 2022 that snarled air traffic nationwide — precisely because it had not paid enough attention to keeping its computer systems updated.
In this case, however, Southwest’s cheapskate culture was its savior. That may only put it on the same level as the proverbial blind squirrel that occasionally finds a nut. But it shows that all of our Big Business squirrels need to keep their eyes open, and focused on the perils of inattention.
Business
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Business
Uber unveils new services as it prepares to bring robotaxis to L.A. soon
Uber announced a new set of services to support ride-hailing for autonomous vehicles ahead of its planned launch of robotaxis in Los Angeles in the coming months.
Uber’s new program, called Uber Autonomous Solutions, aims to give robotaxi ventures easy access to Uber’s customers, software and infrastructure.
Participating companies would get access to Uber’s platform, one of the most widely used ride-hailing apps in the world, as well as unique data Uber has collected from busy streets and pickup areas.
“When partners plug into Uber’s network, they can scale more efficiently, operate more reliably, and move faster,” said Sarfraz Maredia, Uber’s global head of autonomous mobility and delivery.
Under a partnership with Volkswagen announced last year, Uber plans to offer a self-driving taxi network for shared rides that shuttle multiple passengers. It said that it plans to launch the service in Los Angeles early this year, and testing has begun.
The company said that the ride-hailing service will use an autonomous electric minivan from Volkswagen called the ID. Buzz. The effort will rely on autonomous technology from the Volkswagen-owned tech brand MOIA.
The Volkswagen-Uber partnership could be one of many — Uber’s announcement this week outlined a range of tools and software it’s offering to companies looking to scale autonomous vehicle operations.
“Uber has pulled together a whole bunch of tools that will make it easier for robotaxi developers or robotaxi vehicle owners to bring their vehicles to the Uber platform,” said auto analyst Brian Moody. “Most of them don’t really want to be in the business of owning and operating the vehicles.”
Uber isn’t new to the autonomous vehicle space. It attempted to develop its own AV but gave up in 2020. The company is now leaning toward a model in which other companies develop the technology for robotaxis and Uber makes money from them through its app.
Uber already has a partnership with the Mountain View-based autonomous ride-hailing company Waymo. In Austin and Atlanta, customers can book a Waymo vehicle through the Uber app,
The San Francisco-based Uber is also preparing to launch a robotaxi in collaboration with Lucid, a Silicon Valley-based electric vehicle maker, and Nuro, an artificial intelligence company. The companies did not say where the robotaxi would be first available, but said it would launch in late 2026.
In a news release from Nuro, the company described the vehicle as the “industry’s most luxurious robotaxi.” It will feature an Uber-built software interface for riders that’s also offered as part of Uber Autonomous Solutions.
“Autonomous technology has remarkable potential to make transportation safer and more affordable,” said Uber Chief Executive Dara Khosrowshahi in a statement Monday. “For more than a decade, Uber has helped set the standard for on-demand mobility.”
This month, Uber announced it would spend $100 million to build fast-charging stations for electric autonomous vehicles in Los Angeles, the Bay Area and Dallas. The move further solidified Uber’s commitment to the robotaxi market.
Uber isn’t the only one in the race to get more robotaxis on the road.
Waymo is among the top players in the robotaxi industry, with fully driverless services operating in around 10 cities. Waymo arrived in Los Angeles in 2024.
Elon Musk has also been trying to break into the industry with his Tesla robotaxi, which began serving customers in Austin in the summer. In March, Tesla took a step toward autonomous vehicle services in California by applying for a transportation-related permit.
Business
Major Kaiser Permanente strike in California to end after ‘significant movement’ in talks
A major work stoppage that has agitated the nation’s largest not-for-profit medical provider for nearly a month is set to end following productive negotiations, labor leaders said Monday.
The healthcare union representing the 31,000 workers involved in the strike said there had been “significant movement” at the bargaining table over the weekend, and as a result, union leaders decided to notify Kaiser that workers would return to hospitals and healthcare facilities at 7 a.m. Tuesday.
“[R]eturning members to their patients and their livelihoods is the clearest path to securing a final agreement and building on the progress achieved during the strike,” the United Nurses Assns. of California/Union of Health Care Professionals, or UNAC/UHCP, said in a statement Monday.
Kaiser spokesperson Terry Kanakri said the union had accepted a pay proposal the company made in the fall, and called the movement in negotiations “good progress.”
“We are working with our teams to schedule returning employees over the coming days in an orderly way that protects patient safety and minimizes any disruption,” Kanakri wrote in an email.
Tens of thousands of Kaiser Permanente workers, including registered nurses, nurse anesthetists, pharmacists, midwives, physician assistants, rehab therapists, speech language pathologists, dietitians and other specialty healthcare professionals, walked off the job Jan. 26 in an open-ended strike.
The union launched the strike amid stalled contract negotiations, and over allegations it filed in a federal unfair labor practice charge that Kaiser had unlawfully undermined negotiations and attempted to intimidate workers by warning them about the consequences of striking and directing their peers to report union activity to management.
UNAC/UHCP said the healthcare system had neglected discussions over employee burnout and patient safety and unilaterally halted bargaining in mid-December. Kaiser ended talks both with a national coalition of unions representing Kaiser workers — called the Alliance of Health Care Unions, which usually leads negotiations on wages — as well as with local chapters, which preside over bargaining on scheduling and other contract terms specific to union members’ various regions and roles.
The Alliance of Health Care Unions counts some 62,000 Kaiser workers across 23 local unions among its members. UNAC/UHCP, which represents workers in California and Hawaii, is the alliance’s largest unit.
Bargaining over local contracts soon resumed after the lull, with UNAC/UHCP saying in recent days that “real progress” had been made and many “conceptual agreements reached” in negotiations over 15 local agreements covering thousands of healthcare workers.
Kaiser had previously called the strike “unnecessary” and filed a lawsuit in January days before it was set to begin. In the lawsuit, Kaiser argued that UNAC/UHCP was not acting in good faith and accused the union of attempting “to coerce concessions” by compiling and threatening to release a report describing alleged unethical and unsafe practices by the company.
The report noted that the Oakland-based healthcare system’s corporate pension, Kaiser Permanente Group Trust, holds assets in CoreCivic and the GEO Group, the two largest for-profit prison corporations in the U.S. After the report’s release in mid-January, state Assemblymember Liz Ortega (D-San Leandro) introduced Assembly Bill 1799, which would require nonprofit health plans that receive significant state subsidies to disclose direct and indirect investments, including holdings tied to private prisons and immigrant detention.
Kaiser did not respond to a request for comment regarding its stance on the bill.
Anjetta Thackeray, a spokesperson for UNAC/UHCP, said Monday that Kaiser had yet to resume negotiations with the national bargaining table and that there were still many issues to resolve. But she said that because the union had “succeeded in bringing back serious negotiations,” it was important to get “members back to caring for patients and serving communities.”
“The statement had been made. … Members were able to shine a light on some issues,” Thackeray said. “We can’t call [the talks] closed just yet, but they are very, very close.”
A flashpoint had been the union’s request for raises of 25% over four years, arguing that the wage boosts are necessary to compensate for the far smaller increases workers received following previous contract negotiations in 2021, when they received a 2% raise in the first year. Kaiser said it had proposed 21.5% wage increases in October, describing it as its “strongest national bargaining offer ever.”
Kanakri, the Kaiser spokesperson, said the union had now accepted its 21.5% wage increase, and that the company had said for months that was the maximum amount it could offer.
Thackeray said she couldn’t yet provide details on pay or other agreements reached.
The cooling down in labor tensions comes even as other Kaiser workers pursue work stoppages.
About 2,400 mental health therapists, social workers and psychologists for Kaiser patients in the Bay Area, Central Valley and Sacramento, for example, announced Monday they had authorized a one-day strike — citing issues with the way Kaiser triages its mental health patients, using telephone operators and artificial intelligence instead of human therapists. A strike date has not yet been scheduled.
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