Macquarie Government launches Azure practice for agencies

Macquarie Government has launched a Microsoft Azure practice for Australian federal and state government agencies, bringing its public cloud services to government customers for the first time.

The new unit expands Macquarie Government's existing cybersecurity and private cloud work. It already provides cyber services to 42% of federal government agencies and will offer managed Azure services, Microsoft security tools and related cloud products tailored to public sector requirements.

Macquarie Technology's government arm is extending an Azure managed services model already used by its sister business, Macquarie Cloud Services, which has delivered Azure services to Australian businesses for seven years. That business is one of four sovereign Azure expert managed service providers in Australia.

Naran McClung, Executive Head of Azure at Macquarie Cloud Services, is leading the expansion into government. The practice has been adapted to meet government security classifications, including Protected-level requirements.

The launch comes as departments and agencies face pressure to update ageing technology, contain cloud spending and respond to tighter security demands. Microsoft has become a central supplier to government technology programmes, supported by a whole-of-government agreement with the Digital Transformation Agency and a USD $25 billion commitment to digital infrastructure in Australia.

Many agencies have already moved workloads into Microsoft systems and are now focusing on broader transformation projects and the use of artificial intelligence. Macquarie Government's offer includes Managed Azure, Microsoft XDR for managed security, Microsoft Sentinel, Azure Virtual Desktop, Azure Local and Managed Fabric.

The services will be delivered through a co-managed model, with agency teams remaining involved in operating their own environments. The approach reflects demand for arrangements that let public sector customers retain direct oversight while drawing on outside technical support.

Cost control is also driving that shift. Government organisations are managing larger cloud estates, long-standing on-premises systems and a growing need to justify spending while reducing cyber risk.

McClung said the company was bringing an existing commercial model into the public sector.

"We've spent years building and refining a Microsoft Azure practice that Australian businesses trust - now we're bringing that same depth of capability and hands-on delivery model to government," McClung said.

"This means a partner with real-world experience operating Azure environments at scale, backed by the security clearances and accreditations the public sector requires."

Security focus

Cybersecurity remains a leading concern for agencies, particularly as cloud estates expand and more sensitive workloads move into shared platforms. Demand has been strongest for Microsoft Sentinel and related security services.

Macquarie Government has also strengthened its Canberra-based team, appointing former Defence adviser Dr Chris Peiris as Microsoft Security and Azure Lead. The role is intended to support growth in federal and state government accounts.

Aidan Tudehope, Managing Director of Macquarie Government, linked the launch to the company's existing public sector relationships.

"Macquarie Government has spent years earning the trust of Australia's most security-conscious agencies, and that foundation gives us a unique ability to bring enterprise-grade Microsoft Azure capability to government in a way that's secure, transparent, and built around how agencies actually want to work," Tudehope said.

"Demand for cloud, data and AI services across state and federal government has never been higher, and the timing has never been better."

AI hosting

Part of the offer centres on Azure Local, Microsoft's hybrid cloud product, which Macquarie says can support isolated AI hosting for agencies that do not want to rely on public cloud endpoints or external frontier models. The setup allows private language models to run inside an agency's own security perimeter on dedicated infrastructure with graphics processing support.

Macquarie Cloud Services said it had already deployed Azure Local in live customer environments while working with Microsoft's global product teams. Macquarie Government expects demand for sovereign AI hosting to rise as agencies move from trials to operational use.

Microsoft welcomed the launch as public sector organisations look for outside help managing their Azure estates and AI projects.

"Delivering secure, high-impact digital transformation in government depends on strong partnerships. Macquarie Government brings the specialist capability and trusted delivery model that helps agencies maximise the value of Microsoft Azure and AI," said Vivek Puthucode, General Manager, Public Sector at Microsoft Australia and New Zealand.

McClung said the expansion also reflected the company's intention to play a larger role in agency modernisation work.

"This expansion reflects our confidence, unique experience and credentials in the Microsoft platform and our commitment to helping state and federal agencies modernise securely, govern their cloud environments effectively and efficiently, and build the data foundations they need to take advantage of AI," McClung said.