The Microsoft outage cost could run into billions of dollars for businesses, experts warn. The Microsoft Outlook outage started at about 3:15 am AEDT and also hit other Microsoft products. Many users could not reach their email and saw errors.

Workers in many types of business could not open email or SharePoint, Microsoft’s platform for sharing documents. Some resorted to fax machines to keep working.

Ashwin Pal, Risk Advisory partner at RSM Australia, says professional service firms such as lawyers or accountants could lose hundreds of thousands of dollars per hour. He says the catch-up effort afterwards costs money too, because of the backlog. According to Pal, 3.9 million businesses worldwide use the Microsoft suite, and many have no backup systems.

Pal expects the damage to grow. He points to the CrowdStrike outage and says Australia felt the impact first because of time zones. As the US and Europe come online, he warns of a multiplier effect.

Small businesses will be hit hardest, says Pal, because they work on thin margins. A company such as CBA can absorb the blow more easily than a five-person accounting shop, he says. Tracey Tucker, owner of Regal Shower Screens in Queensland, says the lost day will cost at least $30,000. She is paying staff who cannot take orders, and she expects delays for customers.

IT teams are under pressure too. James Coates, an IT support specialist, says he cannot answer help requests because his helpdesk runs on Outlook. He now calls every client individually. Chloe Mombeshora, service delivery manager at telecom company Hubify, says less tech-savvy clients thought their internet was down.

Innes Willox, chief executive of the Australian Industry Group, says businesses need backup plans and contingency plans for outages. Good risk management starts there. He expects the biggest issues to be communication and delays.

Liam Jones of the Australian Chamber of Commerce & Industry says some businesses may now reconsider using Microsoft. Ask yourself how your team keeps communicating when email fails.

Read abc.net.au article for more information.