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Microsoft is sending a “clear message” that Australia is the region to invest in as partners anticipate “remarkable” opportunities from its $5 billion funding.
Speaking to ARN, partners from across Australia’s channel ecosystem have lauded Microsoft’s plans to double its cloud computing capacity, invest in artificial intelligence (AI) and create a “cyber shield” around the nation.
Of particular note to many partners was the decision to build nine more data centres, bringing its total footprint to 29 and create a dedicated skills program through the new Microsoft Datacentre Academy in Australia.
Brad Colledge, Data#3’s soon-to-be CEO, called the announcement “fantastic” for the service provider’s joint customers with Microsoft, as well as Australia overall.
“More data centres in Australia will allow us to extend the opportunities and benefits provided by these solutions to more businesses,” Colledge said.
“As cyber security challenges continue to evolve, we continue to invest in our dedicated security practice and it's heartening to see Microsoft’s collaboration with the Australian Signals Directorate (ASD) bolstering its cyber security capabilities.
“The exponential growth of AI is a remarkable opportunity and we are at the forefront of this wave as part of the Microsoft 365 Copilot Early Access Program (EAP). We are proud to be part of a select group pioneering Microsoft’s AI solutions and we are already engaging our customers in readiness assessments to build solid solution foundations.
“This development is not only a great investment in the Australian economy but also signifies an extended range of services that we can offer to our customers.”
Paul Mangano, managing director of Mangano IT, said the news was a clear message that Microsoft sees Australia as a region to invest in.
“We are generally progressive and historically have been a great region for Microsoft to trial new technologies,” he said.
“This investment will certainly create opportunity with Australian organisations, particularly those with data sovereignty or residency requirements, where Australian-based datacentres are needed to meet their cloud demands.
“More broadly, this investment will ensure organisations across the economy can confidently pursue their digital transformation goals within a more resilient and secure digital economy.”
Investment in AI is, meanwhile, one of the key elements of Microsoft’s investment, as exemplified by the tech giant's Australia and New Zealand managing director Stephen Worrall’s comments during the initial investment announcement last week that the vendor aims to “foster growth and innovation in the era of AI”.
Its announcement is certainly timely. This year, Australia began public consultation this year over the regulation of AI and shortly after Microsoft-backed OpenAI’s ChatGPT exploded into the technology world.
For Adam Centorrino, founder and CEO of Centorrino Technologies, Microsoft’s investment in AI in Australia “is a move in the right direction”.
“Microsoft is investing in the future of business and understands the power AI brings to growth, productivity and efficiency,” he explained.
“AI is here to stay and it’s starting to become an ‘adopt or lose it’ conversation when it comes to keeping that competitor edge. This conversation isn’t about replacing people, it’s about enabling us to do and gain more – as businesses, as employees, as customers.”
“It’s something we’ve seen first-hand here at [Centorrino Technologies] as we’ve adopted more AI-powered tools and tech, enabling us to do more and enhance our service and support,” he added. “We’re not only keeping up with demands, but we’re also providing that next level of customer experience and using insights to anticipate needs.”
CEO and co-founder of Sydney-based Barhead Solutions Ken Struthers noted that his company was already using the virtual assistant tool Microsoft Copilot and is "witnessing significant productivity gains”.
“We are also experiencing efficiencies in our Dynamics 365 projects as we incorporate AI into our delivery framework,” he said. “This investment from Microsoft validates our R&D efforts to date and provides us with the confidence to continue developing new AI-based offerings for our customers. It's an exciting time to be a Microsoft partner.”
Mangano also noted the increasing use of AI in the Brisbane-based IT service provider’s business. “We are embracing AI both operationally as a business and externally by helping clients transform through appropriate AI tools,” he said.
“Our own business is always reviewing tools and systems available to improve the efficiency and consistency of our service delivery and allow us to work on high-value tasks. However, while there’s a lot of talk of AI in the industry, we haven’t seen major gains in the operational monitoring space, but I expect to see utilisation improvements when it does.”
Petar Bielovich, director of data and analytics at Atturra, said the announcement aligned with the company’s drive to deliver innovation and transformation. “The future of data-driven transformation in Australia looks incredibly promising,” he added.
The last key component of Microsoft’s pledge looked beyond technology itself and instead at the skills required to develop it.
Amid an ongoing tech skills shortage, Microsoft said it will work with TAFE NSW to establish a Microsoft Datacentre Academy in Australia in early 2024, with a curriculum aligning to core operational roles such as data centre technicians, critical environment specialists, inventory and asset management professionals and IT operations personnel.
“Skills is a major challenge for our industry and this investment will provide an important boost in the market for much-need specialist talent, like AI,” Mangano said. “Our clients’ demand for AI skills is already prevalent and I expect that to increase as more widely accessible tools, like Microsoft’s Copilot, are adopted.
“While a large proportion of the talent may be snapped up by tier-one service providers, we will see some positive talent flow-through and we’ll be better positioned to push AI solutions for all levels of business, whether that be in configuration and adoption of products like Copilot, or through wider applications to improve business processes.”
He added: “But there is work for partners to do, such as understanding the underlying principles of large language [models] (LLM), Semantic Index and Microsoft Graph. Enabling customers to make the most out of this new technology will mean ensuring as much business data is available as possible to the platform. The way in which data is stored is about to become crucial for harnessing the power of AI.”
Summing up, Colledge said the investment in skills would make Data#3 “well-positioned to support the increased demand resulting from Microsoft's expansion” while also continuing its own commitment to people, skills and solutions.
