Microsoft Halts China-Based Engineers for U.S. Military Cloud Services

Microsoft has ceased the use of engineers based in China to provide technical support for U.S. military cloud services. This decision follows a detailed report that exposed the involvement of China-based engineers in managing parts of the Pentagon’s cloud system, raising significant security concerns. The report highlighted that American "digital escorts" overseeing the work often had less technical skill than the foreign engineers they were supposed to supervise, potentially opening the door for cyberattacks from Beijing.

The backlash began when the report revealed that Microsoft’s Azure engineers in China were involved in managing parts of the Pentagon’s cloud system. This arrangement was deemed unacceptable, especially in the current digital threat environment. The Secretary of Defense under Trump’s administration, Pete Hegseth, criticized the setup, describing it as outdated and a legacy system created over a decade ago. He confirmed that the Department of Defense would begin a full internal review to identify similar activities across other systems.

Microsoft’s decision affects its Azure cloud division, which is a significant revenue generator for the company. The company had previously won a $10 billion cloud defense contract from the Pentagon in 2019, but that contract was canceled in 2021 after a legal dispute. In 2022, Microsoft was awarded part of a $9 billion joint cloud deal alongside other tech giants. Before the investigation, Microsoft had insisted that all of its staff and contractors followed the rules set by the U.S. government. However, public scrutiny forced a quick policy reversal.

Frank Shaw, Microsoft’s chief communications officer, confirmed the change in a statement, saying, “In response to concerns raised earlier this week about US-supervised foreign engineers, 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.” Microsoft remains committed to providing the most secure services possible to the U.S. government, including working with national security partners to evaluate and adjust security protocols as needed.

This move is part of a broader effort by Microsoft to enhance the security of its services for the U.S. military. The company has been under pressure to address these concerns, and the decision to stop using China-based engineers is a significant step in that direction. By taking this action, Microsoft aims to ensure that its services are secure and reliable, and that they meet the high standards required for military applications. The decision highlights the importance of ensuring that sensitive military projects are protected from potential security threats, and it underscores the need for companies to take proactive measures to address these concerns. As the digital landscape continues to evolve, it is essential that companies like Microsoft remain vigilant in their efforts to protect the security and integrity of their services.