Defence Finalizes $495m Agreement for an Extra Five Years with Azure

Brief Overview

• Defence engages in a $495 million agreement with Microsoft Azure for five years.
• The contract enhances Defence’s SAP-based ERP system and broadens its Microsoft 365 platform.
• This deal comes after a prior $107 million Azure agreement.
• Defence continues to make use of Amazon Web Services along with Azure for classified operations.
• Recent technology agreements include services from Citrix and Oracle.

New Azure Alliance for Defence

Defence has forged a significant partnership with Microsoft Azure, committing $495 million for the next five years. Commencing on September 1, this fresh agreement constitutes a notable investment compared to the former $107 million Azure contract that lapsed in June. Data#3 facilitated the arrangement through the government’s Software and ERP Marketplace Panel.

Azure’s Contribution to Defence’s Cloud Initiative

In spite of a $2 billion allocation to Amazon Web Services (AWS) for a classified cloud service assisting the Australian Signals Directorate (ASD), Defence will leverage Azure for critical enterprise functions. The Azure services will chiefly bolster Defence’s SAP-based Enterprise Resource Planning (ERP) platform, which has recently become operational with logistics, maintenance, finance, and procurement modules.

Broadening Microsoft’s Ecosystem

In addition to the ERP platform, Defence is upgrading its Microsoft 365 framework, known as Vera. Defence CIO Chris Crozier has articulated a vision for enhancing cloud-based productivity and collaboration through the M365 environment. While interested in adopting Microsoft Copilot, Crozier noted that the current infrastructure isn’t yet optimal for the tool.

Additional Technology Commitments

Apart from the Azure engagement, Defence has recently finalized technology contracts totaling $59 million for Citrix services over three years and $11 million for a one-year engagement with Oracle. These commitments illustrate Defence’s strategic focus on modernizing its IT framework.

Conclusion

Defence’s $495 million arrangement with Microsoft Azure represents a pivotal advancement in its cloud strategy, complementing its ongoing AWS investments. Focused on enhancing its SAP ERP platform and expanding its Microsoft 365 ecosystem, Defence is prepared to elevate its technological capabilities. Further contracts with Citrix and Oracle reinforce its dedication to a sophisticated IT structure.

Q: What is the worth of the new Azure agreement?

A: The new Azure agreement is worth $495 million over five years.

Q: What will Azure mainly support for Defence?

A: Azure will mainly support Defence’s SAP-based ERP platform and broaden its Microsoft 365 environment.

Q: How does this Azure agreement compare to the earlier one?

A: The new agreement is significantly larger, at $495 million compared to the earlier $107 million agreement.

Q: Is Defence utilizing other cloud services apart from Azure?

A: Yes, Defence has also invested over $2 billion in AWS for a classified cloud solution supporting the ASD.

Q: What other technology contracts has Defence acquired recently?

A: Defence has acquired a $59 million contract for Citrix services and an $11 million contract for Oracle services.

Q: What is Defence’s CIO’s vision for the Microsoft 365 platform?

A: Defence CIO Chris Crozier envisions a shift to more cloud-based productivity, unified communications, and collaboration tools within the M365 environment.