A number of Microsoft services including Outlook and Teams faced disruptions affecting thousands of users starting in the US, and then stretching into the Asia-Pacific business hours.
The tech giant is working to fix the server issues.
A number of Government agencies in the USA, Japan and Australia were impacted by the outage.
In its latest update, Microsoft said that it is seeing positive results for server stability after applying component patch to a portion of its infrastructure, and will continue to monitor its progress. It said it is working to expand it to servers supporting active regions coming online.
“As of now, we are not aware of any malicious activity that is causing this incident. We will continue to treat this incident with urgency and priority until full resolution. Once mitigated, we will provide full details of the root cause, defence-in-depth repair items, and more within a Post-Incident Report.”
Downdetector, which tracks outages, at its peak showed more than 130,000 repots of Outlook problems in the USA at 1pm Eastern Time, Reuters reports.
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