The Pentagon bans China-based staff from cloud work after reports warn of espionage risks and urge tighter supply chain security. The incident underscores an urgent challenge for security teams: state-sponsored hacking campaigns are increasingly exploiting weaknesses in the software supply chain. Inside Microsoft’s digital escort modelMicrosoft developed its digital escort model as a workaround to a longstanding Pentagon rule that requires personnel handling sensitive defense data to be US citizens or permanent residents. AdvertisementThe national security stakesThis episode reflects a broader shift in the cybersecurity landscape: adversarial governments are leveraging global talent pipelines and outsourced engineering to gain footholds in critical infrastructure. As cloud platforms become increasingly intertwined with defense and enterprise operations, the distinction between commercial services and national security targets continues to blur.