Microsoft has the US Navy over a barrel, as the service admits it can't separate its custom-built cloud environment from Azure infrastructure without a complete rebuild "from the ground up."

The Naval Sea Systems Command (NAVSEA) published a sole-source justification letter on Tuesday (with award amounts redacted, naturally) explaining how it can't transition its custom cloud platform to a higher Department of Defense (DoD) security level without Microsoft.

Per the justification letter, NAVSEA Cloud was built with total dependency on services like Azure Data Transfer, Azure Kubernetes Service, Azure SQL PaaS, and others.

"Without the use of these services, the NAVSEA Cloud Program mission systems would be unable to provide critical mission capabilities," the letter argued. "It is infeas

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