India, Aug. 27 -- Extraordinary scenes unfolded at Microsoft headquarters in Redmond. President Brad Smith held an emergency press briefing after a group of protestors broke into his office. The "No Azure for Apartheid" collective, made up of both current and former employees, demanded Microsoft cut ties with the Israeli government amid allegations that its Azure cloud platform is being used for surveillance. Smith acknowledged the complaint but made it clear: the takeover was unacceptable.

Just hours earlier, seven people, including two Microsoft staffers, entered Smith's office in a sit-in protest, locking others out and even hiding listening devices inside the room. They broadcast their action, calling for the company to sever defence...