According to Carlo Daffara, CTO of cloud services provider CloudWeavers, it isn't necessarily surprising that Microsoft had previously failed to encrypt server-to-server communications, given the cost and complexity of such measures. However, he argued that following this summer's spate of surveillance programme revelations, comprehensive encryption techniques would now become a "necessity" from a business perspective.
Link to http://arstechnica.com/security/2013/11/we-still-dont-encrypt-server-to-...