The sad thing about all of this is that Microsoft were pretty much forced into this position (so we're told) by the authorities. In the process these leaks have just destroyed pretty much any credibility Microsoft's online services had, which form large parts of their strategy (according to the recent Ballmer memo). It also makes you wonder about the OS and other software they produce, which isn't a good place for MS…
I think it's wrong to say Microsoft was "forced" into this. In a sense, they made their own bed. I have to believe that the majority of Microsoft's money is based off of serving governments and huge corporations (Windows + Office). It just makes sense that they'll want to keep those relationships.
Think about the impact of the NSA leaks on Microsoft's business. Globally, every customer or potential customer of Microsoft needs to ask whether they can trust Micrsoft as a business partner. Not a good place to be on for a software company transitioning to a cloud services company.