I think the sentiment is less that something catastophic can't happen by depending on M$ - it's more that you personally will never be blamed for their servers going down. Whereas if you advocate for a smaller/more open solution and that blows up in the company's face, it's your ass on the line.

But that could change after the last couple of mistakes by MS.

Do maybe it's still in the head of the people but it could backfire.