Microsoft investigates Outlook outage that affected Outlook users and Teams worldwide

Microsoft is investigating a problem that has affected users of its products, including Outlook and Teams, around the world.

According to the US tech company, it is investigating issues affecting multiple Microsoft 365 services. This refers to a suite that includes Microsoft Teams messaging and videoconference, Outlook email and Word and Excel programs.

Microsoft 365 products are used by millions worldwide. On Wednesday morning, thousands of users reported downtime on Downdetector which tracks problems with tech products. These users were from the UK, Australia, Brazil, and the US. They highlighted problems with Microsoft 365 programs as well as the Xbox Live gaming service and Microsoft’s cloud computing business Azure. Outage reports in the UK appeared to peak around 8 AM GMT.

Microsoft stated that it had “isolated network configuration problems” and was analyzing mitigation strategies to avoid further impact. At 9.26 GMT, it added: “We have reversed a network change we believe is causing damage.”

This reported outage occurred hours after Microsoft highlighted a softening in demand for cloud computing services in its most recent quarterly results. According to Refinitiv data, the company forecast that third quarter revenue from its intelligent cloud business, which is the company’s largest source of revenue, would range between $21.7bn (£17.6bn to $22bn), just below the average analyst forecast of $22.14bn.

“The slight miss in Microsoft’s cloud earnings forecast is likely a reflection of new economic realities that businesses face and not a harbinger for something worse,” stated Bob O’Donnell chief analyst at TECHnalysis research.

Microsoft announced last week that it would be cutting 10,000 jobs or less than 5% from its global workforce. The reason was a post-pandemic shift of digital spending habits and weakening in the global economy. The company’s US counterparts in tech have also made job cuts, including the parent of Facebook, Meta, and Alphabet, the Google owner. They admitted that they had overexpanded during coronavirus, which is a common theme.