Islamabad 20 July: Microsoft ends involvement of engineers based in China in its support of U.S. military cloud systems, in response from the Department of Defense (DoD) over potential security risks.
According to news reports, the move follows an investigative report by ProPublica, which revealed that Microsoft engineers located in China were helping manage parts of the Pentagon’s cloud infrastructure. The revelation sparked intense backlash, particularly over fears that foreign access to such sensitive systems could expose the U.S. to cyber espionage or digital sabotage.
In response, Microsoft issued a public statement confirming that China-based personnel would no longer provide technical support for its government cloud services, including those tied to the DoD. Frank Shaw, Microsoft’s chief communications officer, stated on social media platform X:
“In response to concerns raised earlier this week about US-supervised foreign engineers, Microsoft has made changes… to assure that no China-based engineering teams are providing technical assistance for DoD Government cloud and related services.”
The controversy began when ProPublica reported that foreign engineers working on Microsoft Azure—a platform that generates over 25% of Microsoft’s total revenue—were being monitored by less technically proficient U.S.-based staff. Critics argued the arrangement posed a glaring security risk, especially in today’s volatile cyber landscape.
Former Trump administration Defense Secretary Pete Hegseth condemned the practice, calling it “unacceptable” and pointing to outdated digital infrastructure policies dating back to the Obama era. He also confirmed that the Pentagon has launched a full-scale internal review to assess similar vulnerabilities across other defense-related systems.
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Microsoft, a key player in the federal cloud market, has deep ties with the U.S. government. Though a $10 billion defense cloud contract was scrapped in 2021, the tech giant secured a portion of a $9 billion joint cloud contract in 2022 alongside Amazon, Oracle, and Google. The company disclosed that over half of its $70 billion first-quarter revenue came from U.S.-based customers, with government contracts playing a significant role.
While Microsoft had previously claimed full compliance with federal requirements, the sudden shift in policy underscores growing political and public sensitivity around national security.
