Microsoft's revenue was $281.7 billion for the last year, up 15% on the previous year. Revenue from Azure was > $75 billion. Doesn't seem like a failing company to me.
Azure is a failure once you factor in the concentration risk of their customer portfolio. Most of the revenue comes from maybe 10 companies. OpenAI alone is ~50% of future commitments.
Surely Azure is failing too, it's easily the worst cloud option. We have a few clients who run APIs on Azure and for all of them I've had to write special systems to monitor and handle the API falling over.