The recent Microsoft outage disrupted Outlook and other Microsoft 365 services, leaving many businesses unable to access email or send and receive messages.
For businesses that rely heavily on cloud-based technology, the outage is a useful reminder that even widely used services can become unexpectedly unavailable. Businesses should consider a few practical steps to prepare for similar disruptions.
Pay Attention to Contractual Deadlines and Notices
Many business contracts require notices to be delivered in a particular manner and within a specific timeframe. An email outage can create problems when an important notice happens to be due while email systems are unavailable.
Businesses should understand how their key agreements address notices, including when an emailed notice is considered received and whether alternative methods of delivery are permitted. If a time-sensitive notice involving a termination right, renewal, default, or other important deadline falls during an outage, it may be appropriate to use another permitted method rather than relying solely on email. Because delayed messages may be delivered hours after they were sent, businesses should also confirm receipt of any important notice sent or expected around the time of an outage and keep records showing when it was sent and how. Contracts may also contain force majeure or similar provisions, and whether a technology outage excuses a missed obligation depends on the specific language of the agreement.
Understand Your Dependence on Technology Vendors
Most businesses rely on third-party providers for much more than email. Cloud storage, accounting systems, payment processing, customer management systems, and other essential functions may all depend on outside technology providers.
Businesses should identify which vendors are truly critical to day-to-day operations and consider what would happen if one of those services were unavailable for several hours or a full business day. For particularly important services, businesses should also understand what their vendor agreements say about service availability, customer support, data recovery, backups, and responsibility for service interruptions. Many standard cloud service agreements offer only limited remedies for downtime, such as service credits, and limit the provider’s liability for lost business. Businesses should also review whether their insurance, such as cyber or business interruption coverage, responds to losses caused by a vendor outage that does not involve a cyberattack.
Be Alert for Cybersecurity Risks During an Outage
A widespread technology outage can also create opportunities for phishing and other scams. Employees who know that a system is experiencing problems may be more likely to trust an email, text message, or other communication claiming that they need to reset a password, verify an account, or take steps to restore access.
Businesses should have an established process for communicating legitimate technology instructions to employees. Employees should also know not to provide credentials or follow unexpected links simply because a message appears to relate to a known outage. Because email itself may be unavailable, businesses should identify an alternative channel for sharing verified updates with employees, customers, and key vendors.
