The head of Microsoft’s Israeli subsidiary will leave the company following an internal investigation into the tech giant’s relationship with Israel’s military intelligence unit, which allegedly used Microsoft cloud technology to store and analyze large volumes of intercepted Palestinian communications.
Microsoft launched the inquiry after reports revealed that Unit 8200, Israel’s elite military intelligence agency, relied on the company’s Azure cloud platform as part of a surveillance system handling calls collected from Gaza and the occupied West Bank.
According to sources familiar with the matter, the investigation examined whether employees at Microsoft Israel had fully informed company leadership about how Azure infrastructure was being used by the military unit. Concerns reportedly emerged among senior executives after details surfaced about the scale of the surveillance operation.
Last week, Microsoft Israel general manager Alon Haimovich announced his departure from the company. Israeli business newspaper Globes reported the move came amid controversy tied to alleged ethical violations within the subsidiary, adding that several other managers had also left their roles.
Earlier findings from Microsoft reportedly determined that Unit 8200’s use of Azure violated company policies prohibiting the use of its technology for mass civilian surveillance. The company subsequently cut the unit’s access to certain cloud and artificial intelligence services linked to the project.
Documents cited in previous reporting suggested Haimovich helped expand ties between Microsoft Israel and Unit 8200 following a 2021 meeting involving Microsoft CEO Satya Nadella and the unit’s then commander.
The partnership reportedly included the establishment of a separate Azure environment designed to host sensitive intelligence materials, allowing large archives of intercepted Palestinian communications to be transferred into Microsoft’s cloud systems.
Microsoft has previously said senior leadership, including Nadella, was unaware Azure was being used to store intercepted civilian communications. Company President Brad Smith said last year the company does not provide technology intended to facilitate mass surveillance of civilians.
