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Macquarie Government has launched a Microsoft Azure cloud, security and AI services practice built for Australian federal and state government agencies.
The practice extends Macquarie Government’s existing cybersecurity work with the public sector into managed public cloud and AI services, marking the first time the company has brought its public cloud services to government customers.
Macquarie Government is part of Macquarie Technology Group and currently provides cybersecurity services to 42 per cent of Federal Government agencies, including Tier 1 agencies.
Building On An Existing Azure Practice
The government-focused Azure practice is based on the managed services model that Macquarie Cloud Services has delivered to Australian businesses for seven years. Macquarie Cloud Services 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 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 commented. “This means a partner with real-world experience operating Azure environments at scale, backed by the security clearances and accreditations the public sector requires.”
The government practice has been adapted to meet government security classifications, including Protected-level requirements.
What The Practice Offers
Federal and state agencies will be able to 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 that keeps agency teams as active participants in their own environments. The approach is designed to complement internal resources rather than replace them.
Macquarie Government noted that hybrid delivery is increasingly preferred over fully managed models, driven by cost pressure, legacy complexity and cyber risk. The company positions itself as helping agencies govern their cloud spend and reduce risk without sacrificing control.
All services are backed by security clearances and accreditations that government customers already rely on from Macquarie Government.
Government Modernisation Pressures
The launch comes as Australian government agencies face pressure to modernise, control costs and meet rising security expectations simultaneously.
Microsoft has established itself as a preferred platform for government, signing a whole-of-government agreement with the Digital Transformation Agency and committing $25 billion to Australian digital infrastructure. Many agencies have already migrated into Microsoft environments, and the focus is now shifting to transformation and AI adoption.
Aidan Tudehope, Managing Director of Macquarie Government, pointed to rising demand across the public sector.
“Macquarie Government has spent years earning the trust of Australia’s security-conscious agencies, and that foundation gives us the 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 noted. “Demand for cloud, data and AI services across state and federal government has never been higher.”
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Cybersecurity And Cost Management
Cybersecurity remains a top priority for agencies, with Microsoft Sentinel and aligned security services seeing strong demand. Cost management and cloud governance are also pressing concerns as agencies grapple with growing cloud footprints and ageing on-premises infrastructure.
Macquarie Government’s portfolio is designed to help agencies realise the value of the Microsoft whole-of-government agreement by attaching managed services, security and cloud governance capabilities.
Sovereign AI Hosting
Azure Local, Microsoft’s hybrid cloud solution, opens a pathway to sovereign, isolated AI hosting for agencies that need to use AI without relying on frontier models or public cloud endpoints.
Running on purpose-built infrastructure with GPU capability, Azure Local 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.
Microsoft’s View
Vivek Puthucode, General Manager of Public Sector at Microsoft Australia and New Zealand, backed the partnership.
“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,” Puthucode commented.
New Appointment
To accelerate growth in the federal and state public sector, Macquarie Government has appointed former Defence Adviser Dr Chris Peiris as Microsoft Security and Azure Lead, based in Canberra.
“This expansion reflects our confidence, 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 added.
Agencies can find more information about Macquarie Government’s Azure and Microsoft Security services at macquariegovernment.com.
Last Updated on July 22, 2026 by Nick Ross
