Microsoft has countered recent criticism from Delta Air Lines CEO Ed Bastian regarding a major IT outage last month that cost Delta approximately $500 million. Bastian has demanded compensation from both Microsoft and CrowdStrike, blaming them for the disruptions. However, Microsoft claims that Delta ignored several offers of free assistance during the crisis.
Offers of Assistance Ignored
Mark Cheffo, co-chair of Dechert’s global litigation practice and Microsoft’s lawyer, revealed that Microsoft reached out daily from July 19 to July 23, offering help at no charge. These offers were rejected by Delta. Cheffo’s letter to Delta’s legal team stated, “Microsoft empathizes with Delta and its customers about the CrowdStrike incident. However, your letter and Delta’s comments are incomplete, misleading, and damaging to Microsoft’s reputation.”
Challenging Bastian’s Account
The letter challenges Bastian’s portrayal of Microsoft. In a recent CNBC interview, Bastian criticized Microsoft as “fragile” and contrasted it unfavorably with Apple, mentioning that over 40,000 of Delta’s servers were impacted by the faulty CrowdStrike update. Microsoft’s letter suggests that Delta’s issues may have been broader than just the Windows server outage.
Repeated Assistance Denied
Microsoft’s letter outlines the company’s proactive approach during the outage. Despite the crisis not being caused by Microsoft’s software, the company offered help immediately after the July 19 incident. Each day from July 19 to July 23, Microsoft’s team reached out, only to have their offers turned down.
On July 22, a Delta employee reportedly assured that things were “all good,” even though Delta had to cancel over 1,100 flights that day and another 500 the next. Cheffo also noted that high-level Microsoft executives, including CEO Satya Nadella, tried to contact Delta without success. Nadella’s email to Bastian on July 24 went unanswered, possibly because Bastian was en route to the Olympic Games in Paris, where Delta serves as the official airline for Team USA.
Issues with Non-Windows Systems
Microsoft suggests Delta’s refusal of help might be related to difficulties with non-Windows systems. The letter proposes that Delta struggled most with its crew-tracking and scheduling systems, which are managed by other providers like IBM, rather than Microsoft. This could mean that Delta’s issues were compounded by problems with infrastructure not supported by Microsoft.
Concerns Over IT Infrastructure
Microsoft also pointed out that Delta’s IT infrastructure may not be as modernized as that of competitors such as American Airlines or United Airlines. The CrowdStrike incident disrupted Windows-powered devices worldwide, affecting many airlines and forcing them to cancel numerous flights. Delta’s older IT infrastructure could have made it more susceptible to these disruptions.
Ongoing Compensation Dispute
The fallout from the outage severely impacted Delta, resulting in over 5,000 flight cancellations and the manual resetting of 40,000 servers. Despite Microsoft’s repeated offers of help, Delta’s recovery was hindered. Bastian’s demand for compensation from both CrowdStrike and Microsoft continues as the situation unfolds.
As the dispute continues, the extent of the outage’s impact and the reasons behind Delta’s decision to reject Microsoft’s assistance remain key points of contention between the companies.
