UPDATED 07:08 EDT / DECEMBER 07 2013

Seeking to tap new markets, Microsoft sharpens security focus

Following in the footsteps of Google and Yahoo, Microsoft revealed plans this week to expand its encryption efforts as part of a company-wide push to put user data beyond the reach of nosy governments.

“Like many others, we are especially alarmed by recent allegations in the press of a broader and concerted effort by some governments to circumvent online security measures – and in our view, legal processes and protections – in order to surreptitiously collect private customer data,” Brad Smith, the software behemoth’s general counsel, blogged on Wednesday.

Microsoft intends to beef up security around all of its major offerings, notably the Office productivity suite, Skype, and the Azure development platform. The firm will implement “best-in-class industry cryptography to protect these channels,” according to Smith, including Perfect Forward Secrecy and 2048-bit encryption. By the end of 2014, customer data will be safe from NSA’s prying eyes at all times, even as it travels between data centers operated by different service providers in the Microsoft ecosystem. The software maker hopes that the move will help deflect some of the criticism over its involvement in the notorious PRISM program, clearing the way to new growth opportunities.

Smith revealed Microsoft’s encryption initiative on the same day Azure chief Steven Martin announced that the cloud service will become available for customers in Brazil. That means local companies can now store data in their home jurisdiction with minimal compliance risk, rather than a remote Windows Azure Region. Also on Wednesday, the European Union gave Microsoft the go ahead to acquire Nokia’s hardware business. The $7.17 billion deal earns the company a foothold in the lucrative mobile market, where it’s currently lagging behind Apple and Google.


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