Microsoft says a huge outage of E-mail and other services was likely caused by a Domain Name System (DNS) issue.
Users of Office365 Hotmail, SkyDrive and other Microsoft Live properties experienced outtages from around 1pm Australian Eastern Standard Time, itnews reported.
SBS, which recently moved to Microsoft, was amongst many affected clients which saw a total outtage in email services, which hit users from the Asia-Pacific to Europe.
"We are investigating service interruption. Will update as soon as more details are available or within hour," Office365 tweeted.
It later added that services were slowly resuming.
Early rumours said the issue may have been related to major power cuts in California, but reports on itnews said even Microsoft had pulled an article suggesting this from its own blog.
Such problems are not uncommon for cloud based services, with other major email operators including Google experiencing similar problems in the past.

