Update Thu, Dec 26 2013 7:53 PM: We investigated the issue further and engaged our partners in Windows Azure as our calls to storage are failing with a 503. As it stands currently, for the past 60 minutes we have not seen any more new errors in our service. Storage team is attempting to root cause the issue, to ensure we understand potential recurrence patterns. We will provide another update after we hear back from Storage. At this point all aspects of our service are fully functional and operating at expected levels.
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Initial Update Thu, Dec 26 2013 6:53 PM UTC: We are investigating issues with the service where certain operations (version control, project creation) are failing with a 503 Service unavailable error. We will provide an update in the next 60 mins or sooner. We apologize for the inconvenience this may have caused.
VS Online Service Delivery team