empty
15.03.2021 04:30 PM
Winner takes it all: Microsoft can get up to a quarter of Biden package subsidies

It was widely reported on Friday that the Exchange mail server program has a serious bug that allows hackers to gain access to organizations' networks and even take over control, demanding payment for non-disclosure of trade secrets. And although Microsoft promptly released the update, many businesses around the world reported that they were unable to install it for one reason or another.

This image is no longer relevant

The first scandal happened in December last year. American analysts have linked it to Russian hackers using SolarWinds technology. Then a scandal raged over emails from the Departments of Justice, Commerce, and Treasury. More than 100 private companies and 9 government agencies were affected. And although the software of most of the large vendors from time to time is "under the gun", it is Microsoft products that are more likely to be vulnerable.

More recent hacks have relied on the flaws in the Exchange application. The attacks are attributed to Chinese hackers, which the Chinese government denies.

In this regard, the CEO of the company expects to receive funding from funds allocated as part of protection against cyber attacks under programs to support the economy during the COVID-19 pandemic.

These funds will be part of the funding for the anti-crisis package from the Democrats, which Biden signed on Thursday. For example, in the draft cost estimate of the Cybersecurity Infrastructure Security Agency, more than $150 million of the total amount of $650 million is allocated for a secure cloud platform to combat the cyber threat.

At the very least, according to company officials, the money is budgeted by Microsoft mainly to help federal agencies update the software to improve the security of cloud storage systems.

The company's key service today is activity logging, which allows customers to track data traffic in their part of the storage and identify inconsistencies associated with information leaks.

Cybercrime officials have tried to gain access to the company's advanced capabilities after finding that the lack of such logs makes business more difficult.

In response, the tech giant said that while each of the company's products has security features, "Larger institutions may need additional capabilities. For example, on the study of journals."

The agency declined to comment.

And while most lawmakers see no problem in increasing funding, some senators are outraged by the funding of the software developer, which has already appeared in two major hacking scandals over the past six months. They believe that data security holes make hacking more profitable and popular.

This image is no longer relevant

For example, Senator Ron Wyden from Oregon and one of four senators who spearheaded the Internet Cybersecurity Improvement Act of 2016 aptly said, "If the only solution to defend against hackers is to give more money to Microsoft, which has long ignored the threat of hacks, then the government should reconsider its dependence on Microsoft. We should not reward the company that sold unsafe software to the government with even larger government orders."

Representative Jim Langevin, at a congressional hearing on the hack in December, asked CEO Brad Smith, "Is Microsoft a profit-driven, or is it a cost-priced service to customers?"

Smith made it clear that this is a commercial service that also includes profits.

Senators protesting the increase in funding for the private conglomerate believe that the concern has effectively turned data security services into a separate line of revenue. Thus, revenues in this area alone exceed $10 billion per year. This is 40% more than in 2020.

Curtis Dukes, the former head of the NSA's defense commission, admits the government may well introduce new rules that would oblige suppliers to take more security efforts.

This image is no longer relevant

In the meantime, Microsoft Corporation (MSFT) shares are recovering from Friday's failure and have already reached the level of $233.6. Further growth of indicators is expected with the opening of the American stock exchange.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Egor Danilov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for September 4

US stock indices showed mixed results: the S&P 500 rose by 0.51%, while the Nasdaq 100 gained 1.01%. The rise in index futures is attributed to expectations

Ekaterina Kiseleva 12:13 2025-09-04 UTC+2

Oil Prices Fall Amid Rumors of New OPEC+ Output Increase: Markets Await Key Decision

The global oil market is once again shaken: prices are confidently heading downward following news of a possible production increase by major exporters in the coming weekend. The upcoming OPEC+

Natalia Andreeva 00:48 2025-09-04 UTC+2

US Market News Digest for September 3

September is traditionally an unfavorable month for US equities, with the S&P 500 historically falling by an average of 2%. Current sell-offs in the bond market are putting pressure

Ekaterina Kiseleva 13:09 2025-09-03 UTC+2

US Market News Digest for September 2

S&P 500 and Nasdaq started the week with declines, losing 0.64% and 1.15% respectively. Amid uncertainty ahead of key economic data, traders are closely watching the dynamics of gold

Ekaterina Kiseleva 13:11 2025-09-02 UTC+2

US Market News Digest for September 1

US stock indices closed last week in negative territory: S&P 500 -0.64%, Nasdaq -1.15%, and Dow Jones -0.20%. Asian equities are also under pressure due to the sell-off

Ekaterina Kiseleva 13:38 2025-09-01 UTC+2

US Market News Digest for August 29

The US stock market continues to gain ground thanks to the upward revision of second-quarter GDP from 3% to 3.3%, which supports investor optimism. The S&P 500 reached a historic

Ekaterina Kiseleva 13:48 2025-08-29 UTC+2

Dollar: Calm Before PCE—and Scenarios for "After"

The market has entered a wait-and-see mode. The dollar index is drifting around 98.0 after fluctuations in Treasury yields. On Wednesday, the 10-year yield rose during the day, then fell

Anna Zotova 00:37 2025-08-29 UTC+2

Bitcoin trails Ethereum but doesn't give up: most important yet to come. S&P 500 stays afloat

The first cryptocurrency continues to face challenges, largely due to selling pressure. Nevertheless, BTC is striving to prevent Ethereum from firmly taking the lead. The complex situation with the Federal

Larisa Kolesnikova 11:51 2025-08-28 UTC+2

Bitcoin under pressure: markets react to rising liquidations and new regulatory plans

Bitcoin's recent price drop has coincided with a rise in funding rates and a decline in traders' use of leverage on futures markets. According to Glassnode analysts, the potential

Natalia Andreeva 15:30 2025-08-27 UTC+2

US Market News Digest for August 27

The S&P 500 is approaching a new record amid a stable economy and expectations of Fed rate cuts. Investors are disregarding political tensions, including President Trump's efforts to replace FOMC

Ekaterina Kiseleva 13:25 2025-08-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.