Microsoft has made the decision to stop allowing engineers based in China to provide technical support for US military cloud systems. This change was implemented due to concerns about security risks associated with the company’s work with the Department of Defense.
The decision came shortly after ProPublica published an in-depth report detailing how Microsoft had been relying on its Chinese team to assist with Pentagon-related cloud services for the past decade. To address security concerns, US workers with security clearance were supervising the overseas team to prevent any breaches.
Frank Shaw, Microsoft’s chief communications officer, announced the change on social media, stating that no China-based engineering teams would be providing technical assistance for DoD Government cloud and related services going forward.
This update impacts Microsoft’s Azure cloud division, which now accounts for more than a quarter of the company’s total revenue. While Azure is larger than Google’s cloud business, it still lags behind Amazon Web Services. Microsoft derives a significant portion of its revenue from US government clients, with over half of its recent $70 billion quarterly earnings coming from US customers.
In recent years, Microsoft has been awarded and then lost a major defense cloud contract. The Pentagon has since awarded a new $9 billion cloud deal split among Microsoft, Amazon, Google, and Oracle.
The report by ProPublica highlighted concerns about the management of Microsoft’s China-based engineers, with US supervisors often lacking technical expertise compared to the overseas teams they were overseeing. This raised fears of potential cyberattacks due to gaps in oversight.
Defense Secretary Pete Hegseth expressed dissatisfaction with the current setup, calling it unacceptable in today’s digital threat environment. The Department of Defense will conduct a review to ensure that similar arrangements are not present in other areas.
Hegseth emphasized that China will no longer be involved in US military cloud systems, with a comprehensive review planned to identify any potential vulnerabilities. He reassured that all threats to military infrastructure and online networks would be monitored and countered.
Microsoft has affirmed its compliance with US government regulations and is collaborating with national security officials to enhance its security measures.
See also: Cloud’s hidden cost: Data centre water consumption creates a global crisis
Interested in learning more about cybersecurity and the cloud from industry experts? Don’t miss out on the upcoming Cyber Security & Cloud Expo events in Amsterdam, California, and London.
Discover other upcoming enterprise technology events and webinars hosted by TechForge here.
