Microsoft to 'co-invest' in Defence's Azure adoption

Microsoft is setting up a co-investment program with Defence that will see the department receive financial support for unspecified "cloud adoption and digital transformation" activities.

Defence revealed last week it had contracted Data#3 to supply the vendor's software and cloud services in a five-year, $495-million arrangement through what’s referred to as a Microsoft Azure Consumption Commitment or MACC deal.

iTnews can reveal that access to the vendor’s enterprise customer investment fund (ECIF), a co-investment program that “allows Microsoft to set aside funding in fiscal budgets to pay for services to end-customers in support of [its] products and solutions”, is part of the new arrangement.

In a statement to iTnews, Defence said the funding would see Microsoft “co-invest [in] Defence’s cloud adoption and digital transformation”.

“The investment supports Defence's digital transformation objectives in line with the Defence digital strategy and roadmap," the spokesperson said.

"It will also support Defence’s broader secure cloud strategy and investments."

Defence also confirmed that the ECIF will cover pilots and cloud migration, but was unable to “discuss the specific funding arrangements for the ECIF, as it is commercial in confidence”.

ECIF was formerly known as either business investment funds (BIF) or customer investment funds (CIF).

The fund could be used to encourage Defence to try out emerging or nascent Azure services that aren't on its adoption roadmap, but that the vendor is keen to push.

The funding can also be used by a Microsoft partner to provide one-on-one training to customers on using Azure cloud services.

Defence has two significant Azure programs in the works: the first is the in-progress SAP-based enterprise resource planning (ERP) platform, which recently went live with modules for logistics, maintenance, finance and procurement.

The other is Defence’s Microsoft 365 environment, known as Vera, which is also being expanded.