New York, Wednesday, July 31, 2024— CrowdStrike Holdings Inc. partners estimate a 20% reduction in new bookings for the second half of the year following a significant tech outage, according to a report by Morgan Stanley.
The cybersecurity firm’s partners reported disruptions in their operations due to the outage, which occurred earlier this month and lasted several days. The incident affected the deployment and performance of CrowdStrike’s services, leading to delays in new client acquisitions and implementations.
Morgan Stanley analysts highlighted that the outage has had a notable impact on customer confidence and partner operations. “The technical disruption has introduced a level of uncertainty that has slowed down the pace of new bookings,” the report stated.
CrowdStrike, a leader in cloud-delivered endpoint protection, has been a crucial ally for many businesses in safeguarding against cyber threats. The outage, however, has raised concerns about the reliability of its services, prompting some clients to reconsider or delay their contracts.
Despite the setback, Morgan Stanley remains cautiously optimistic about CrowdStrike’s long-term prospects, citing the company’s strong market position and the increasing demand for cybersecurity solutions. However, the analysts warned that the company must address the underlying issues swiftly to restore confidence and avoid further impact on its growth trajectory.
CrowdStrike has acknowledged the outage and is taking measures to enhance the robustness of its systems. “We are committed to ensuring such incidents do not occur in the future and are working closely with our partners and clients to mitigate any impacts,” a spokesperson for CrowdStrike said.
The tech firm’s stock saw a slight dip following the report but has shown resilience in early trading sessions.
