Macquarie Government brings managed cloud, cybersecurity and AI-ready capabilities to government customers as Microsoft’s investment in Australia accelerates
CANBERRA – 22 July 2026 – Macquarie Government, part of Macquarie Technology Group (ASX: MAQ), 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 proven success of the 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 per cent 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 comprehensive 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 – bringing expertise and proven delivery models to complement internal resources, not replace them. Hybrid delivery is increasingly preferred over fully managed models, driven by cost pressure, legacy complexity and cyber risk. As specialists in optimising Azure environments for cost and security, Macquarie Government helps agencies govern their cloud spend and reduce risk without sacrificing control. All services are backed by the security clearances and accreditations government customers already rely on from Macquarie Government.
“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.”
It comes as Australian government agencies face simultaneous pressures to modernise, control costs, and meet rising security expectations. Microsoft has established itself as the preferred platform for government, signing a new whole-of-government agreement with the Digital Transformation Agency (DTA) and committing $25 billion to Australian digital infrastructure. Many agencies have already migrated into Microsoft, and the challenge now is transformation and embracing AI.
Cybersecurity remains the top priority for agencies, with Microsoft Sentinel and aligned security services seeing strong demand, while cost management and cloud governance are pressing concerns as agencies grapple with growing cloud footprints and ageing on-premises infrastructure. Macquarie Government’s expanded portfolio is designed to help agencies realise the full value of the Microsoft agreement by attaching specialised managed services, security, and cloud governance capabilities.
“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, Managing Director, 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.”
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. 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 expects sovereign AI hosting to be one of the fastest-growing parts of the portfolio as agencies move from AI experimentation to production.
“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.
Macquarie Government already serves as a trusted cybersecurity partner to 42 per cent of Federal Government agencies. To accelerate growth in the federal and state public sector, Macquarie Government has recently appointed former Defence advisor Dr Chris Peiris as Microsoft Security and Azure Lead, based in Canberra.
“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,” said McClung.
Agencies interested in learning more about Macquarie Government’s expanded Azure and Microsoft Security services can visit https://www.macquariegovernment.com/government-microsoft-azure-services/.
##
About Macquarie Government
Macquarie Government, part of ASX-listed Macquarie Technology Group, has provided sovereign cloud and cyber-security solutions to Australian governments for over 19 years. Our sovereign clouds and cyber security platforms are providing cyber security services to 42% of the Federal Government.
With the highest customer satisfaction NPS score in the industry, Macquarie Government provides unrivalled support with 24×7 access to our Hosting Management Centre. Our Security Operations Centre (SOC) and 200+ government-cleared cloud and security specialists ensure our government customers’ data and systems are safe.
Visit the site for more information.
About Macquarie Cloud Services
We are the Australian specialists in cloud services for business and government customers. For more information, visit macquariecloudservices.com.
Media Contacts:
Oisín O’Callaghan
Watterson (for Macquarie Government)
oisin.ocallaghan@watterson.com.au
+61431612386
PR Archives: Latest, By Company, By Date