You've got to read between the lines with a corporate statement. There are two major issues this one: 1) They're giving no indication that they can't decrypt t

You've got to read between the lines with a corporate statement. There are two major issues this one: 1) They're giving no indication that they can't decrypt their customers data. This won't protect customers from the thousands of information requests that they're not allowed to publicly acknowledge, and will only hamper vectors such as MITM fibre splitting. This is concerning given the fact the US intelligence agencies share their data with private companies, and that Microsoft didn't even attempt resist previous requests. They have no incentive to inform customers and fight expensive legal battles, so as soon as the whole privacy thing blows over it will be back to old habits. 2) Allowing companies to review their source code is only useful for their desktop products. Most data is going into the cloud now, plus it's possible to use cross library exploits and obfuscated code. I don't actually think that they'll do this now, hover they've done it in the past with their famous NSAKEY in the 4.0 kernel. Office 2008 with a firewall will keep your data safe. Office365 is a company risk. I wouldn't put anything more confidential than a CV or short story on it.