Microsoft stops using Chinese tech support for this customer over national security concerns
The policy revision directly impacts Microsoft Azure, the company's cloud services division, which now accounts for over 25 per cent of Microsoft's global revenue, larger than Google Cloud but still behind Amazon Web Services. The company's most recent earnings report noted that more than half of its $70 billion in Q1 revenue was generated from US-based clients, with a substantial chunk tied to government contracts.This isn't the first time Microsoft's cloud involvement with the US military has drawn scrutiny. Back in 2019, the company secured a $10 billion cloud contract with the Pentagon, only for it to be cancelled in 2021 after legal disputes. By 2022, Microsoft was again one of the chosen vendors in a $9 billion multi-supplier defence cloud deal alongside Amazon, Google, and Oracle.The ProPublica report, which prompted the recent policy overhaul, revealed that Chinese Azure engineers were managed remotely by US-based supervisors known as 'digital escorts', individuals who reportedly had less technical knowledge than the staff they were overseeing. According to the report, this system could leave critical US defence infrastructure vulnerable to foreign interference.US Defence Secretary Pete Hegseth didn't mince words in response. 'This is obviously unacceptable, especially in today's digital threat environment,' he said in a video posted on X. Hegseth criticised the structure as 'a legacy system created over a decade ago, during the Obama administration,' and confirmed the Department of Defence would review its infrastructure for similar issues.Update on DOD's cloud services pic.twitter.com/0wCe3vmuNU— Secretary of Defense Pete Hegseth (@SecDef) July 18, 2025While Microsoft initially defended its operations, claiming that its teams followed US regulations, it has since promised to undergo further scrutiny and cooperate with national security partners. 'We remain 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,' Shaw added.The incident highlights the growing tension between global tech operations and national security expectations, a balancing act that's becoming increasingly difficult in today's high-stakes cyber environment.- Ends
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
12 minutes ago
- Indian Express
Trump, Xi aides discussed autumn US-China leaders' meeting, sources say
Aides to Donald Trump and Chinese leader Xi Jinping have discussed a potential meeting between the leaders during a trip by the US president to Asia later this year, according to two people familiar with the plans. While plans for a meeting have not been finalized, discussions on both sides of the Pacific have included a possible Trump stopover around the time of the Asia-Pacific Economic Cooperation summit in South Korea or talks on the sidelines of the October 30-November 1 event, the people said. Trump has sought to lower tensions with Beijing in recent weeks after pausing a tit-for-tat tariff war that has upended global trade and supply chains. China has also sought the attendance of international guests, including some from the United States, for a September 3 Beijing ceremony commemorating the 80th anniversary of the end of World War Two, said a spokesperson for China's embassy in Washington in a briefing last week for reporters. The Kremlin said on Monday it did not rule out the possibility of Russian President Vladimir Putin and Trump meeting in Beijing in September if Trump decides to attend that ceremony. Putin has confirmed his attendance. 'Diplomacy between heads of state plays an irreplaceable strategic leading role in Sino-US relations,' said Chinese Foreign Affairs Ministry spokesperson Guo Jiakun on Monday, declining to comment on a possible Trump-Xi meeting. The White House declined to comment. US Treasury Secretary Scott Bessent said on Monday there would be 'talks in the very near future' between the countries. 'Trade is in a good place, and I think now we can start talking about other things. The Chinese, unfortunately … are very large purchasers of sanctioned Iranian oil, sanctioned Russian oil,' he told CNBC. He added: 'We could also discuss the elephant in the room, which is this great rebalancing that the Chinese need to do.' Trump has sought to impose tariffs on virtually all foreign goods, which he says will stimulate domestic manufacturing and which critics say will make many consumer goods more expensive for Americans. He has called for a universal base tariff rate of 10% on goods imported from all countries, with higher rates for imports from some, including China. Imports from China have the highest tariff rate of 55%. Trump has set a deadline of August 12 for the US and China to reach a durable tariff agreement. Other points of friction between the countries include China's support for Russia, trade in fentanyl-related chemicals, regional security worries, and exit bans on some American residents. The most recent high-level US-China meeting was on July 11, when US Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi had what both described as a productive and positive meeting in Malaysia about how trade negotiations should proceed. Rubio said then that Trump had been invited to China to meet with Xi, and said that both leaders 'want it to happen.' On Friday, China Commerce Minister Wang Wentao said China wants to bring its trade ties with the U.S. back to a stable footing and that recent talks in Europe showed there was no need for a tariff war.
Time of India
an hour ago
- Time of India
UltraTech Cement posts profit of Rs 2,221 crore in Q1 FY26
NEW DELHI: UltraTech Cement on Monday reported a consolidated net profit of Rs 2,220.91 crore for the first quarter ended June 30, 2025. It had posted a net profit of Rs 1,493.45 crore for the year-ago period, the Aditya Birla group flagship firm said in a regulatory filing. Revenue from operations stood at Rs 21,275.45 crore during the first quarter of FY26. It was Rs 18,818.56 crore a year earlier. The company said its results for the June quarter are not comparable due to the acquisition of South-based India Cements Ltd, Wonder WallCare and Ras Al Khaimah, UAE-based RAKWCT. Moreover, the scheme for merger of cement business of Kesoram Industries with UltraTech and their respective shareholders and creditors was also effective from March 1, 2025. "The company's consolidated sales volumes reached 36.83 million tonne for the quarter, growing 9.7 per cent with the acquisitions of India Cements Limited and the cement business of Kesoram Industries," UltraTech said in its earnings statement. With all these acquisitions and brownfield expansions, UltraTech has increased its grey cement capacity to 192.26 million tonnes per annum (MTPA). "UltraTech's expansion program is progressing as scheduled, with the company continuously enhancing its production capabilities to meet the growing demand for cement," it said. Its total expenses in the June quarter of FY26 were at Rs 18,405.19 crore. The company's total income, which includes other income, was at Rs 21,455.68 crore in the June quarter. During the quarter, its energy costs were lower by 12 per cent Year-on-Year (YoY), mainly on account of reduced fuel prices. However, raw material costs marginally rose by 2 per cent, the statement added. On India Cements Ltd, the company which UltraTech acquired in December last year, said, "Comprehensive efforts on multiple fronts have enabled India Cements to generate an EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) of Rs 92 crore, compared to a loss of Rs 9 crore last year". Moreover, through debottlenecking, an additional capacity of 0.3 MTPA has been released from the India Cements assets in the lucrative northern region. "Furthermore, a capex plan is being made for investments over the next two years for improvement in all areas of operations to bring these assets at par with UltraTech standards," it said. In the June quarter, UltraTech commenced 12 MW of WHRS (Waste Heat Recovery Systems) capacity. "With this, the company's total WHRS capacity stands augmented to 363 MW," it said, adding that "The share of green power in the company's power mix is 39.5 per cent." Shares of UltraTech Cement settled 0.49 per cent higher at Rs 12,560 apiece on the BSE.
Time of India
an hour ago
- Time of India
Enforcement directorate arrests two Ramprastha Group directors
NEW DELHI: The Enforcement Directorate on Monday arrested Sandeep Yadav and Arvind Walia, promoters of Haryana-based realty company Ramprastha Group , as part of a money laundering investigation linked to an alleged Rs 1,100 crore fraud with homebuyers, official sources said. The arrests came after the Gurugram zonal office of the federal probe agency raided three premises in Delhi and Gurugram, including those of the directors, early morning. The two are directors and majority shareholders in Ramprastha Promoters and Developers Pvt. Ltd. ( RPDPL ), according to the sources. They have been taken into custody under the Prevention of Money Laundering Act (PMLA), they said. The company or its promoters could not be contacted for a comment on the ED action against them. The agency had conducted a survey against the group in September 2024. Searches were conducted against the group in September 2024, too. It is alleged that the RPDPL collected about Rs 1,100 crore from more than 2,000 homebuyers for various housing schemes like Project Edge, Project Skyz, Project Rise and Ramprastha City (plotted colony project) in various sectors of Gurugram during 2008-11. The possession of the flats or plots is yet to be given, even after 15-20 years, the sources said. Earlier this month, the agency had attached colonies and plots spread across more than 1,900 acres and worth over Rs 681.54 crore of the group in Gurugram as part of this investigation. The money laundering case stems from multiple FIRs filed by the Economic Offences Wing (EOW) of the Delhi and Haryana Police based on complaints of numerous homebuyers against RPDPL and its promoters, like Yadav, Walia and Balwant Chaudhary for their "failure" to deliver promised flats and plots within the promised timeframes, the ED had said in a statement. The company and its promoters "diverted" the funds sources from buyers of these projects to its group companies as advances for the purchase of land parcels, instead of using them for completion of promised homes, it had said. The company said on its website that it holds a large land bank in Gurugram with a combined development potential of over 80 million sq ft between Gurugram and Ghaziabad. "We have successfully sold 8,000 dwelling units in the region and have the potential to reach nearly 1,00,000 dwelling units in the days to come," it said.
