Wait so are people just going to lose their passwords? That seems like terrible PR for a company that want to shift to services. If you rug people just for marketing reasons like that why should anyone trust you with important business processes. This won't be something people can just ignore, if I lost my (homebrew for exactly this reason) password manager it would probably cause close to 40 hours of time cleaning up the mess spread out of months. We're talking about millions, potentially even billions of dollars worth of destruction depending on how many people were stupid enough (yes that's the appropriate word although it's more obvious now) to trust Microsoft to maintain their secrets for them.