Macquarie Government launches Microsoft Azure practice for govt agencies

Macquarie Government, part of Macquarie Technology Group, today launched a new Microsoft Azure cloud, security, and AI services practice purpose-built for Australian federal and state government agencies.

The move builds on the existing Azure managed services model delivered by Macquarie Cloud Services, one of four sovereign Azure expert managed service providers in Australia, to hundreds of Australian businesses for seven years.

Leading this expansion is Naran McClung, executive head of Azure at Macquarie Cloud Services, who has shaped the practice from its inception and is now extending that expertise into the public sector.

The Government practice using Azure has been adapted to meet government security classifications, including Protected-level requirements. It extends Macquarie Government's established cybersecurity capability servicing 42% of Federal Government agencies, including Tier 1 agencies, into modern public cloud and AI services for the public sector.

The new practice will mean federal and state agencies can access a suite of Azure-native services, including Managed Azure, Microsoft XDR for managed security, Microsoft Sentinel, Azure Virtual Desktop, Azure Local and Managed Fabric.

Each service is built around a co-managed delivery model, keeping agency teams as active participants in their own environments, aiming to bring expertise and proven delivery models to complement internal resources, not replace them.

All services are backed by the security clearances and accreditations government customers already rely on from Macquarie Government.

Azure Local – Microsoft's hybrid cloud solution – opens a pathway to sovereign, isolated AI hosting for agencies that need to harness AI without relying on frontier models or public cloud endpoints, Macquarie claimed. Running on purpose-built infrastructure with GPU capability, it lets agencies host private language models inside their own security perimeter.

Macquarie Cloud Services has already been deploying Azure Local, working directly with Microsoft's global product teams and operating live customer environments on the platform. Macquarie Government stated that it expects sovereign AI hosting to be one of the fastest-growing parts of the portfolio as agencies move from AI experimentation to production.

To accelerate growth in the federal and state public sector, Macquarie Government also recently appointed former Defence advisor Dr Chris Peiris as Microsoft Security and Azure lead, based in Canberra.

“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,” said McClung.

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

“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,” said Aidan Tudehope, MD of Macquarie Government.

“Demand for cloud, data, and AI services across state and federal government has never been higher, and the timing has never been better," said Vivek Puthucode, GM of public sector at Microsoft Australia and New Zealand.

“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."