To be honest I hate takes like yours, where people think that acknowledging a mistake (even a giant mistake) is a sign of weakness. A bigger sign of weakness in my opinion is people who commit to a shitty idea just because they said it first, despite all evidence to the contrary.
I also feel, that they can patch relationships, Satya may be upset now but will he continue to be upset on Monday?
It needs to play out more before we know, I think. They need to pitch their plan to outside stakeholders now
Microsoft could run the entire business as a loss just to attract developers to Azure.