The US Navy has admitted that it can’t leave its custom-built cloud environment, NAVSEA Cloud, without Microsoft’s support. A recent letter from the Naval Sea Systems Command (NAVSEA) revealed that transitioning to a higher security level would require a ground-up rebuild and delay the program by at least 36 months. The Navy had sought advice from other cloud providers like AWS, Google, and Oracle but found they couldn’t meet the full NAVSEA Cloud requirement or timeframe.
Microsoft has become essential to the US government, with the Navy relying on its services for critical mission capabilities. The company’s security record is questionable, with recent breaches in Russia, China, and even within its own systems. Despite this, Microsoft has received lucrative contracts from the US government, including a recent award after its previous security failures were exposed.
The Navy plans to structure future cloud infrastructure deals using open containerization standards to avoid relying on a single provider like Microsoft. However, the exact reasons behind NAVSEA Cloud’s customization remain unclear, and neither the Navy nor Microsoft has offered an explanation.
Source: https://www.theregister.com/2025/09/24/us_navy_cloud_azure_lock