A cyber attack was most likely responsible for the Microsoft outage on Tuesday that lasted for several hours and came barely two weeks after CrowdStrike's botched security update led to massive disruption globally.
Microsoft said a distributed denial-of-service (DDoS) attack targeted its cloud division on the day the tech major released its fourth-quarter earnings.
While services are back to normal now, we look at what a DDoS is and whether this episode has affected Microsoft in other ways.
What is DDoS?
Microsoft initially said it had “identified a potential networking issue” before confirming later that the “initial trigger event” was caused by a DDoS attack.
“Initial investigations suggest that an error in the implementation of our defences amplified the impact of the attack rather than mitigating it,” Microsoft said in an update on the website of Azure, its flagship cloud computing platform.
A DDoS is a common weapon of choice in cyber attacks. In such a scenario, the perpetrator overwhelms a network server with internet traffic, which then prevents users from accessing services and websites.
DDoS attacks more than doubled in 2023, soaring 112 per cent year-on-year, Seattle-based F5 Labs said in a study released on Wednesday.
“The sharp rise in DDoS activity hit certain industries particularly hard in 2023,” it said. “Software and computer services remained the most targeted and experienced more than twice the number of attacks in 2023 as the previous year.”
A DDoS attack can be hard to confirm. For example, after pop star Michael Jackson died in 2009, Google initially thought the unusually high number of users searching for him meant it was under attack.
“The DDoS landscape is more complicated than ever, as companies not only deal with a growing volume of attacks but also a range of activity that is not necessarily malicious, but which can result in denial of service,” F5 Labs director David Warburton said.
These can include reseller bots attempting to buy large amounts of inventory or web scrapers seeking product and pricing information, he added.
What is Microsoft's strategy against DDoS?
Microsoft's strategy to counter DDoS attacks is backed by its massive global presence and by using tools “unavailable to most other organisations”, according to its website.
The company engages with key industry players, including internet service providers and private corporations globally, enabling “Microsoft to absorb attacks across a large surface area”, it says.
It also deploys multiple DDoS detection systems at regional data centres to deter attacks and prevent them from spreading to a global scale – which “ensures that Microsoft services can handle multiple simultaneous attacks”.
What services were affected?
In the latest incident, Microsoft's cloud services were affected, including endpoint management solution Intune, identity and access service Entra, coding tool Power Platform, the Microsoft 365 admin centre and its major cloud service, Azure.
SharePoint Online, OneDrive for Business, Microsoft Teams and Exchange Online were not affected, it said.
Tuesday's outage was not as widespread and damaging as the CrowdStrike debacle, and did not cause any notable disruption.
However, Starbucks acknowledged that it was affected, as its customers had trouble making payments on its app.
“Earlier today, some customers were briefly unable to access the mobile order and pay feature in the Starbucks app due to a third-party system outage,” a representative of the Seattle-based coffee chain said.
The issue at Starbucks did not last long, with services back up and running within a few hours.
As of posting time, everything seems normal with Microsoft's services, according to its service health status website.
Why would an Azure outage matter?
Microsoft Azure is the company's flagship cloud computing service that powers its services across the globe, and any major outage would have severe consequences.
Azure is the second biggest cloud provider worldwide with a 25 per cent market share in the first quarter of 2024, according to data from Statista.
That gives it a lead over other majors including Google Cloud (11 per cent) and Oracle (2 per cent). It is also closing in on market leader Amazon Web Services, which has a 31 per cent market share.
The cloud became a key selling point for Microsoft, particularly when Satya Nadella took the helm as chief executive in 2014 and chose to pivot towards heavily promoting the service.
Azure's notable customers include McDonald's, Adobe, BNY Mellon, Siemens, chipmaker Advanced Micro Devices, government organisations and the World Bank.
That has worked well for the company, boosting investor confidence and its bottom line: Microsoft overtook Apple as the world's most valuable company and became only the second enterprise to hit the $3 trillion market capitalisation mark in January.
Did the outage hit Microsoft's stock?
Microsoft's shares dropped by about 1.5 per cent as news of the outage made the rounds, and later declined to 3 per cent down in extended-hours trading after the company reported its fourth-quarter results.
In after-hours trading, Microsoft's share price was nearly 7 per cent down, but it is unclear if this was linked to Tuesday's outage.
That is a big difference from how the CrowdStrike incident affected Microsoft's shares, which shed barely 1 per cent at the time.
As of 12.44pm UAE time, the stock has recovered and is only down 0.89 per cent.
Opening Premier League fixtures, August 14
- Brentford v Arsenal
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- Chelsea v Crystal Palace
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- Manchester United v Leeds United
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
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1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
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"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
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Nick Coleman
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Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region
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A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
AIR
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MATCH INFO
Real Madrid 2 (Benzema 13', Kroos 28')
Barcelona 1 (Mingueza 60')
Red card: Casemiro (Real Madrid)
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
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Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
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