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National Defence uses US cloud services for 'mission critical' applications
(www.nationalobserver.com)
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The title is a bit deceptive, they're American companies, but the datacenters are in Canada.
Microsoft has like half a dozen spread out across the country.
Of course this is the case though, there's literally no other country that doesn't use them unless they're literally banned. Even China has Microsoft datacenters, and I pretty much guarantee they're used for government and military purposes.
What does that change? It's still property of Microsoft, and they've stated quite recently that US law will override any notion of sovereignty or ownership. So the datacenters could be anywhere, the data is, for all intents and purposes, american.
And? It doesn't change the fact that there's literally no way to be competitive with their services. Even Google can't compete, and they've been trying for 15 years and spending billions of dollars.
What's Canada going to do? Spend $100 billion of our tax dollars trying to compete so that we don't have to use US software?
As said by another, no need to offer the service worldwide, no need to be competitive, just need not to give them our data. It will cost a lot yes, but I'd much rather that than giving freely all our data to a fascist government and a kowtowing corporation.
Also nice moving of the goalposts, you first said that the article's title was deceptive, "because the datacenters are in Canada". I maintain my claim that this changes absolutely nothing to the story.