To Harris, who had previously spent nearly seven years working for the Defense Department, it was a security nightmare. Anyone using the software was exposed, regardless of whether they used Microsoft or another cloud provider such as Amazon. But Harris was most concerned about the federal government and the implications of his discovery for national security. He flagged the issue to his colleagues.

They saw it differently, Harris said. The federal government was preparing to make a massive investment in cloud computing, and Microsoft wanted the business. Acknowledging this security flaw could jeopardize the company’s chances, Harris recalled one product leader telling him. The financial consequences were enormous. Not only could Microsoft lose a multibillion-dollar deal, but it could also lose the race to dominate the market for cloud computing.