Thursday evening’s report on Microsoft cutting off the IDF’s Unit 8200 from its Azure cloud services landed with some surprise. Still, the military was not blindsided. According to various accounts, the unit had already withdrawn its stored data from Microsoft before the disconnection. It is unclear whether the company gave advance notice or acted abruptly, but it seems unlikely Microsoft would risk damaging its relationship with Israel without some warning.
When asked for comment, the company pointed to a blog post by its president, Brad Smith. He wrote that the move applied only to Unit 8200’s storage of intercepted Palestinian calls, which Microsoft said violated its policies. The post also praised Israel’s cyber defense capabilities and Microsoft’s role in supporting the Abraham Accords.
The claim rings hollow for many in Israel. They argue that Israel — and especially Unit 8200 veterans — has contributed far more to Microsoft’s cyber strength than the company has contributed to Israel. Microsoft’s main cybersecurity R&D center is in Israel and built in large part on the acquisitions of Israeli startups founded by Unit 8200 graduates. Companies such as Adallom, Wiz and Secure Islands were all created by veterans of the unit and later purchased by Microsoft, generating billions for the company. From this perspective, Microsoft’s decision feels like turning its back on the very well from which it has drawn.
The IDF has not explained how the situation developed, but the issue was already on the radar. In a briefing more than two months ago, senior cyber defense officers were asked whether the army was prepared for a scenario in which American tech giants might be pressured to stop supplying services during the Gaza war. A senior officer replied, “Of course.” Yet it seems unlikely the military expected such a scenario to materialize so quickly.
At present, there is no easy alternative. Moving to a new provider would require transferring vast amounts of data, adapting to a new platform and training personnel — a process that could take months. Amazon and Google already supply cloud services to the Israeli government under Project Nimbus, but the IDF cloud system is separate. Oracle is another supplier and is seen as less vulnerable to political pressure; the company operates a private data center in Jerusalem and its leaders, including founder Larry Ellison, are openly supportive of Israel.
Amazon and Google could also step in, though both face internal pushback from employees opposed to supplying Israel. Meanwhile, Microsoft may eventually decide it is in its interest to quietly restore services.
What is clear is that the announcement has already damaged Microsoft’s image in Israel. It is the first major technology company to act so bluntly against Israel during the war. The decision could influence not only the military’s relationship with Microsoft but also its standing in the broader public sector — and even among private customers who may prefer to spend their money elsewhere.