How the CrowdStrike outage is transforming the software industry

The CrowdStrike outage, which disrupted an estimated 8.5 million devices, prompted widespread upheaval but also paved the way for positive transformation. Our research, surveying 400 software development professionals from organisations with over $10 million in annual revenue across the UK, USA, and Germany, revealed that 74% of businesses reported positive changes in response to the incident.

One of the most encouraging outcomes is the increased investment in software development and cybersecurity. An impressive 86% of enterprises are boosting their budgets for software development, while the same percentage is focused on hiring new talent. This surge in investment reflects a collective commitment to building more resilient systems and ensuring that organisations are better prepared for future challenges.

The outage exposed a lack of preparedness, with 82% of organisations either lacking adequate incident response plans or having none at all. However, this has driven a shift towards more robust development practices. In fact, 81% of businesses have implemented stronger development protocols, and 80% have enhanced cybersecurity awareness among their staff.

Interestingly, the disruption has accelerated development timelines for many organisations, with 68% reporting shortened delivery times. This newfound efficiency, paired with improved security measures, suggests that companies are finding smarter ways to work.

The industry is not only responding with immediate changes but is also making strategic investments for the future. A remarkable 99.5% of organisations plan to expand their technical teams, with a strong focus on quality assurance, IT operations, software development, and DevOps engineering. Additionally, there is a noticeable shift towards diversifying software and service providers, with 83% of organisations exploring new partnerships or strengthening existing ones.

Open-source adoption is also set to surge, as 34% of companies plan to increase their reliance on open-source solutions. This move reflects a nuanced approach to risk management, combining diversification with strengthened vendor relationships.

Our CTO, Jon Mort, aptly described the CrowdStrike incident as a "call to arms" for the software industry. While the widespread impact was concerning, the industry's response has been nothing short of remarkable. With unprecedented levels of transformation underway, from massive investments in training and hiring to fundamental changes in development and vendor relationships, the industry is on a path to building more resilient, efficient, and secure systems.

However, the journey is far from complete. With only 12% of organisations expressing high confidence in preventing similar incidents, it is clear that deeper cultural and structural challenges must be addressed. The positive outcomes reported by the majority of organisations suggest that, despite the challenges, this incident could be the catalyst needed to drive lasting change in our industry.

For more detailed insights, you can read the full press release here.