Microsoft Windows 365 goes down the day after Microsoft celebrates 'reimagining the PC as a cloud service that streams a Cloud PC'

1966woodenghost January 25, 2026 0

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Earlier today, Microsoft’s Windows 365 suite of productivity apps went down, with the Microsoft 365 Status X account blaming it on a service infrastructure in North America “not processing traffic as expected.”

The first tweet went live at 7:37 PM GMT, with the confirmation of the service being restored going live at 6:29 AM the next day. However, according to Down Detector, reports were still being filed hours after Microsoft 365 Status reported the service was back.

The unfortunate irony of this is that an article was posted on the Windows blog the same day, where it envisioned Windows 365 “reimagining the PC as a cloud service that streams a Cloud PC—a complete, secure, personalized Windows experience to any device, anywhere.”

This blog introduces AI agents in the context of Cloud PCs, explaining “organizations can automate complex workflows, scale operations without adding headcount and unlock new productivity gains—all while maintaining enterprise-grade security and compliance.”

We’re investigating a potential issue impacting multiple Microsoft 365 services, including Outlook, Microsoft Defender and Microsoft Purview. Further information can be found in the admin center under MO1221364.January 22, 2026

Ultimately, this practice gives you less and less direct control over the PC you own, and when it goes down, with you suddenly losing access, it’s hard to see why anyone would want to bet on that vision. The problem isn’t with the notion of accessing your programs from other devices or using them remotely, but instead the idea of turning your PC into a cloud service.

For a parallel, I quite like GeForce Now, and have previously even gotten some use out of Xbox Game Pass’ streaming service. However, the day that means removing any hardware in my house and relying solely on my internet connection is the day I will likely stop gaming. That’s not just me being hyperbolic; it’s partly me acknowledging my lacking internet connection and desire to have things run without it.

This is one of many moves from Microsoft to encompass all of its products into one big blob and pop an AI bow on it. Just last year, Microsoft renamed Office to the “Microsoft 365 Copilot app” but also kept Copilot as, well, Copilot.