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Cloud News of the Month - July 2024

The Cloudcast

NOTE

A Legal Challenge Could Reshape Accountability in IT Security

The legal action taken by Delta Airlines against CrowdStrike in response to a significant service outage may lead to transformative changes in accountability within the IT and security sectors. If the courts recognize the extent of damages that exceed the typical contractual obligations, it could redefine the expectations and liabilities of IT contractors. This incident suggests that mere apologies and superficial remedies, such as minor compensation, will no longer suffice; companies may need to address substantial business ramifications and demonstrate genuine accountability for failures. The outcome could set a precedent that impacts future contractual relationships in technology and security, emphasizing the necessity for robust risk management and contingency strategies.

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