The Australian Department of Defence has entered into a significant co-investment partnership with Microsoft to advance its cloud adoption and digital transformation initiatives. This collaboration is facilitated through Microsoft's Enterprise Customer Investment Fund (ECIF), designed to financially support organizations in implementing Microsoft's products and solutions. The ECIF will assist Defence in piloting new technologies and migrating existing systems to the cloud, aligning with the department's digital strategy and secure cloud investments. (itnews.com.au)
In parallel, Defence has committed to a five-year, $495 million agreement with Data#3, Microsoft's exclusive government reseller, for Azure-based services. This contract, commencing on September 1, 2025, succeeds a previous three-year, $107 million arrangement that concluded on June 30, 2025. The substantial increase in investment underscores Defence's dedication to leveraging cloud technologies for its operations. (itnews.com.au)
The Azure services will primarily support Defence's SAP-based Enterprise Resource Planning (ERP) platform, which has recently been deployed with modules for logistics, maintenance, finance, and procurement. Additionally, the department is expanding its Microsoft 365 environment, known as Vera, to enhance productivity and collaboration. (itnews.com.au)
This strategic partnership reflects a broader trend of increased collaboration between the Australian government and Microsoft. In October 2023, Microsoft announced a $5 billion investment to expand its cloud computing and AI infrastructure in Australia, aiming to bolster the nation's digital capabilities and cybersecurity defenses. (news.microsoft.com)
The co-investment initiative between Defence and Microsoft signifies a concerted effort to modernize Australia's defense infrastructure through advanced cloud solutions, ensuring enhanced operational efficiency and security.
Source: iTnews Microsoft to 'co-invest' in Defence's Azure adoption
