Macquarie Cloud Services signs major Microsoft Azure deal

Macquarie Cloud Services has signed a Microsoft Azure Datacentre Optimisation agreement, with Microsoft forecasting Macquarie's Azure consumption will reach USD $278 million over three years.

The deal is among the largest Datacentre Optimisation agreements signed in the region and extends a relationship that has grown over the past six years.

Under the arrangement, Macquarie Cloud Services will help customers migrate workloads to Azure and update existing infrastructure. The Datacentre Optimisation programme is a Microsoft initiative designed to help partners expand Azure use and support hybrid cloud projects.

The agreement offers a clearer indication of the scale Microsoft expects from Macquarie's Azure business. It also reinforces the Australian provider's position in Microsoft's regional partner network as organisations continue shifting systems, data and applications to public cloud platforms.

Macquarie cited market growth as one driver of that shift, saying Australia's public cloud market is expected to reach about AUD $220 billion by 2034. Demand is linked to artificial intelligence projects, cyber security work, modernisation programmes and regulatory requirements affecting sectors covered by rules including APRA CPS 230 and 234, the Security of Critical Infrastructure Act and Essential Eight maturity measures.

Partner expansion

This is the third Datacentre Optimisation agreement Macquarie Cloud Services has signed with Microsoft. It has also held Microsoft Expert MSP status for six consecutive years.

Macquarie says it has delivered average cloud cost savings of 26 per cent for thousands of Australian organisations. It also does not charge separately for professional services or consulting tied to migrations or transformation work, instead including those costs in managed services fees.

That commercial structure may matter in a market where customers are balancing pressure to modernise systems with tighter scrutiny of spending and operational risk. Cloud migration projects have increasingly moved beyond basic infrastructure transfers to broader programmes covering data handling, resilience, compliance and AI-related work.

Vincent Texcier, Global Datacentre Optimisation Centre of Excellence at Microsoft, outlined the company's view of Macquarie's role in that market.

"Macquarie Cloud Services continues to demonstrate strong leadership in helping Australian organisations modernise with Microsoft Azure," said Vincent Texcier, Global Datacentre Optimisation Centre of Excellence at Microsoft.

"Through this agreement, Macquarie Cloud Services can continue helping customers migrate and modernise infrastructure, strengthen their cloud foundations, and prepare for future data and AI opportunities," Texcier said.

Cloud demand

The agreement comes as large technology companies intensify their focus on Australia's cloud market. Microsoft has outlined a planned USD $25 billion investment in Australia, adding competition and capacity in a market shaped by sovereign data concerns, cyber security obligations and growing use of AI tools.

For service providers such as Macquarie, that creates an opportunity to win more work from organisations that need help not only choosing cloud services but also managing the operational and regulatory demands that come with them. Businesses in finance, government, infrastructure and other regulated industries are under increasing pressure to demonstrate resilience, security controls and clear oversight of outsourced technology environments.

Naran McClung, Executive Head of Azure at Macquarie Cloud Services, said the company was seeing broader and more advanced use of Azure among customers.

"By combining our capabilities with the DCO framework, we are enabling customers to move to Azure at scale, while building a foundation for data, AI, and next-generation applications that will ultimately drive the Australian economy," said Naran McClung, Executive Head of Azure at Macquarie Cloud Services.

"Increasingly, our growth is being driven by customers expanding into new workloads and more sophisticated capabilities as their cloud maturity develops, as well as organisations moving to Azure for the first time. This agreement reflects continued confidence in our Azure capability, experience, and customer outcomes. We look forward to continuing to work closely with Microsoft as it continues its own significant investment in Australia," McClung said.