Just as Cloud based services – including CDNs – begin to attract attention a major outage of all Microsoft Cloud services will dent confidence. Hotmail, Office 365 and Skydrive were among the services affected.

Microsoft was still analysing the cause of the problem this morning (Friday) but said it appeared to be related to the internet’s DNS address system.

The latest disruption lasted for around two-and-a-half hours, between 0400 GMT and 0630CET. Microsoft said: “We have completed propagating our DNS configuration changes around the world, and have restored service for most customers.”

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