Microsoft ends reliance on China-based engineers for Pentagon cloud support
What's the story
Microsoft has announced a major change in its business practices, barring China-based engineers from providing technical support for the cloud computing systems of the US Department of Defense (DoD). The move comes after an investigation by ProPublica revealed that the tech giant had been using Chinese engineers to maintain Pentagon computer systems, with supervision by US personnel who sometimes lacked the necessary technical expertise. Frank Shaw, Microsoft's Chief Communications Officer, confirmed the shift in a post on X.
Policy change
'No China-based engineering teams...'
Shaw's post read, "Microsoft has made changes to our support for US Government customers to assure that no China-based engineering teams are providing technical assistance for DoD Government cloud and related services." Secretary of Defense Pete Hegseth also confirmed that work on Defense Department cloud services had been outsourced to personnel in China. He stressed that the country will have "no involvement whatsoever" with the department's systems going forward. This comes amid growing concerns over national security and cybersecurity risks.
Business impact
Policy change affects Microsoft's Azure cloud services division
The policy change affects Microsoft's Azure cloud services division, which analysts estimate now generates over 25% of the company's revenue. Despite this setback, Microsoft remains committed to providing secure services to the US government. Shaw said in his post that they are "committed to providing the most secure services possible to the US government, including working with our national security partners to evaluate and adjust our security protocols as needed."
System audit
Hegseth orders review of Pentagon systems for similar practices
In light of these revelations, Hegseth has ordered a review of Pentagon systems for similar practices. He said, "At my direction, the department will... initiate - as fast as we can - a two-week review, or faster, to make sure that what we uncovered isn't happening anywhere else across the DoD." This move is part of a broader effort by the US government to address potential national security risks from foreign involvement in defense technology.