Microsoft deeply sorry after global disruption could bring billion-dollar impact to Australia

Recovery follows lengthy outage

Microsoft described the outage as a technical issue, not linked to cyber-attacks or AI agents. It said it was restoring services gradually to support a stable recovery. The company suggested the problem may have involved settings on servers that keep Microsoft 365 operating. Services began recovering after roughly 18 hours of disruption.

Economic risks and backup plans

Experts warned the outage could be a major shock to the Australian economy, with costs potentially reaching billions of dollars and some small businesses at risk of closure. RSM Australia partner Ashwin Pal said clients had activated continuity and disaster recovery plans, but many businesses lacked fallback options.

Pal said Microsoft had struggled to recover, raising broader concerns. The Australian Computer Society renewed its call for the federal government to urgently review critical IT systems that depend on one provider and identify backup arrangements.

Public services feel effects

Australian hospitals and health clinics were affected, but the Australian Medical Association said there had been no impact on patient care. Courts in South Australia and Victoria reported email problems, and many schools around the country were affected.

Service NSW urged customers to postpone visits to its service centres. Asio chief Mike Burgess said the agency’s systems had been affected at one level, but not completely.

Disruption reaches other countries

In the UK, healthcare systems were disrupted, and several police forces asked people to report crimes by phone rather than online. In Japan, Sagawa Express could not accept online reservations for some services at airports and train stations.

Taisho, a leading pharmaceutical company, said it had to handle orders by phone. The international effects came as Microsoft continued its gradual restoration of services.