It is unethical for universities to entrust their computing and email to Microsoft services because this exposes them to surveillance.

In addition, letting someone else's server do your computing means you lose control over that computing. This is known as Service as a Software Substitute.

Microsoft services also involve running nonfree software.

By the way, the article falls into confusion when it calls services "products". A product is something physical that you buy, own, and take home.