Microsoft Cuts Off China-Based Engineers from Pentagon Cloud Support Amid Security Concerns

Microsoft has revised its internal practices to ensure that engineers based in China will no longer provide technical support for U.S. Department of Defense (DoD) cloud services — a move driven by rising national security and cybersecurity concerns.

Strategic Shift Following National Security Scrutiny

The change was announced just days after ProPublica published a detailed report revealing Microsoft’s reliance on China-based Azure engineers to support Pentagon-related services. In response, Microsoft stated that it has updated its protocols to eliminate any involvement from overseas engineers in sensitive U.S. government cloud operations.

Frank Shaw, Microsoft’s Chief Communications Officer, shared on X (formerly Twitter):

“In response to concerns raised earlier this week about U.S.-supervised foreign engineers, Microsoft has made changes to assure that no China-based engineering teams are providing technical assistance for DoD cloud and related services.”

Digital Escort Model Raises Red Flags

According to the investigation, Microsoft had previously employed a “digital escort” model, where U.S.-based supervisors — often with lower technical expertise — oversaw Chinese engineers remotely. This arrangement was flagged as a potential vulnerability to cyberattacks, particularly in the context of rising geopolitical tensions with China.

U.S. Defense Secretary Pete Hegseth called the setup:

“A legacy architecture from over a decade ago during the Obama administration — and utterly unacceptable in today’s threat environment.”

The Department of Defense has since launched a broader review of its systems to identify similar exposures.

Azure's Critical Role in Microsoft’s Revenue

Microsoft Azure, the company's cloud computing platform, now generates over 25% of total revenue, surpassing Google Cloud but trailing behind Amazon Web Services (AWS). According to Microsoft's latest earnings report, over half of its $70 billion quarterly revenue comes from U.S.-based customers — many of whom are government clients.

While Microsoft initially won a $10 billion JEDI contract with the DoD in 2019, the deal was canceled in 2021 following a legal dispute. However, in 2022, the company was awarded a share of a new $9 billion cloud infrastructure contract alongside Amazon, Google, and Oracle.

Microsoft Reaffirms Commitment to Security

In its official statement, Microsoft reiterated that its employees and contractors comply with U.S. government regulations. The company emphasized its ongoing efforts to provide secure and compliant cloud services to public sector clients.

“We remain committed to delivering the most secure services possible to the U.S. government, including working with our national security partners to evaluate and adjust our security protocols as needed,” said Shaw.