VENDORiQ: Perth’s Azure Expansion – A Boost for Western Australia’s Digital Ambitions

Why it Matters

WA has a long history of intensive computing needs; the Pawsey Supercomputing Research Centre for health is one such example. This move by Microsoft acknowledges the high computational demands of WA and will likely be driven by the public sector, as well as the resources and environmental sectors. The existing heavy use of cloud services, as well as sophisticated edge computing and IoT in these sectors, underscores the need for robust, low-latency infrastructure. 

The Azure expansion will enable WA organisations to host critical workloads locally, enhancing performance. For example, Northern Star Resources anticipates using the new capacity to host critical workloads with high performance and security. 

While Microsoft’s investment signals a commitment to the region, it’s worth noting that the company is also expanding its cloud infrastructure in Malaysia and Indonesia. This suggests a broader strategy for the ASEAN region. While Microsoft recently pulled back on infrastructure investments, likely due to the growth of its infrastructure CapEx outpacing revenues due to the costs of AI, it appears to be remaining committed to growth opportunities in the Australian and Southeast Asian regions.

Who’s Impacted?

• CIOs and Cloud Architects in firms with WA or regional presence: Evaluate how the new Azure Extended Zone can improve their infrastructure’s performance, resilience, and data residency for workloads in WA.
• Organisations looking to expand resilience with additional sovereign zones: Assess the Azure Perth region as a potential option for enhancing their disaster recovery and business continuity strategies.

Next Steps

• Cloud Strategy Alignment: Explore how Microsoft’s domestic and regional expansion aligns with your organisation’s cloud strategy, particularly if you have existing operations or planned expansions in WA and the ASEAN region. Review your organisation’s cloud strategy in light of Microsoft’s broader infrastructure investment trends and its focus on AI and cloud services.
• Benefits Assessment: If a WA organisation, evaluate the potential cost and performance improvements of migrating workloads to the new Azure zone. Also, examine Microsoft’s offerings for data residency and compliance within the Perth Extended Zone.
• Feature Availability: Monitor Microsoft’s rollout of services in the Perth Extended Zone, as not all Azure services may be available immediately.