Red Sea Cable Cuts Hit Both Microsoft and Supply Chains

Microsoft has confirmed disruption to its Azure cloud services following multiple subsea cable cuts in the Red Sea.

As internet traffic routed through the Middle East experiences increased latency, the incident serves as a reminder of the risks subsea cable issues pose to cloud providers, not to mention global supply chains and the telco sector.

Azure customers hit by increased latency

According to a public status update from Microsoft, Azure traffic across the Middle East “may experience increased latency due to undersea fibre cuts in the Red Sea".

However, the tech giant clarified that "traffic that does not traverse through the Middle East is not impacted".

Despite efforts to reroute services through alternative paths, enterprise cloud users in Asia and the Gulf have reported slower internet speeds, potentially affecting supply chain operations dependent on real-time data and AI-driven applications.

As the world's second-largest cloud provider, Microsoft supports hyperscale telecommunications workloads and BSS/OSS systems. Service reliability is paramount for operators using Azure for latency-sensitive processes, such as supply chain management, where even minor disruptions can lead to cascading effects on operations.

Subsea cable routes disrupted

Connectivity watchdog NetBlocks has reported a “series of subsea cable outages in the Red Sea,” which degraded internet connectivity across multiple countries. Most notably affected were India, Pakistan and the UAE.

Impacted systems include the SMW4 (South East Asia–Middle East–Western Europe 4) and the IMEWE (India–Middle East–Western Europe) cables operated by Tata Communications and an Alcatel-led consortium, respectively.

These outages occurred in waters near Jeddah, Saudi Arabia, highlighting a vulnerability in a critical artery for global data traffic.

Officials warned of “significant degradation during peak hours,” as engineers work to restore full functionality. This creates a potential risk for businesses relying on seamless data availability, particularly during peak operational periods when real-time decision-making is essential.

Impact on regional service providers

In the UAE, operators like du and Etisalat have also reported issues, with users experiencing slow speeds and intermittent access. 

Though regional authorities have not formally acknowledged the full extent of the disruption, efforts to stabilise connections amid ongoing cable repairs are both necessary and complex.

The reliance on subsea systems is especially critical as they carry over 95% of international data traffic.

The need for robust contingency planning has never been more evident, as global networks weather these disruptions. Investments in diverse infrastructure, including terrestrial cables and satellite connectivity, are part of emerging strategies to mitigate such vulnerabilities.

Wake-up call for supply chain leaders

Industry analysts assert that these disruptions highlight the challenges inherent in dependence on subsea infrastructure.

The acceleration of cloud-based services in the telco sector means that any vulnerability in these cables directly translates into operational risks for businesses and consumers. Failover systems offer some relief, although rerouting via less-efficient and longer pathways ultimately results in performance degradation, particularly during peak hours.

The Pakistan Telecommunication Company noted strain “especially during peak hours,” highlighting the need for global operators to actively coordinate with hyperscaler partners and regional carriers to enhance resilience. Increased investment in diverse subsea networks, terrestrial infrastructures and emerging satellite technologies are integral to future-proofing supply chain operations.

Clearly, the intricacies of modern-day supply chain management – particularly in a globalised economy – depend heavily on reliable data pathways.

This latest Red Sea disruption is surely another wake-up call for logistics and supply chain leaders, who must prioritise resilience and implement robust infrastructure to maintain seamless operations and communication across borders.