Why the New Azure Network Updates Matter for Enterprise Cloud

If you’ve ever looked at your cloud bill- the one that lands with a heavy thud on your desk every month—and wondered, "What exactly am I paying for?", you aren't alone. Most executives I chat to feel the same way. It’s usually a mix of confusion and mild panic, especially when the total creeps over that £50k mark.

Well, Microsoft just announced some big updates to Azure networking, and while "networking updates" might sound like something to leave to the IT crowd, this one is actually really important for the finance folks aswell, the person paying the bills.

Because it’s all about the foundation for the next big thing: Agentic AI.

First, what even is "Agentic AI"?

You know how ChatGPT waits for you to ask it a question? That’s passive. Agentic AI is different. Think of these as software "agents" or robots that can go out and do things for you without waiting to be told every single step.

Imagine an AI agent that notices your inventory is low, checks the supplier’s prices, negotiates a discount, and places an order—all while you’re asleep. That’s Agentic AI.

But here’s the catch: for these digital workers to be fast and reliable, the "roads" they travel on (your cloud network) need to be incredibly smooth and secure. If the road is full of potholes (network lag) or closed (downtime), your expensive AI agents sit idle, burning money.

The Azure Update: Better Roads for Your Robots

Microsoft’s latest update is essentially repaving the highways. They’ve tripled their network capacity to something called 18 petabits per second. I won’t bore you with the physics, but imagine widening the M25 to 500 lanes.

How this applies to Enterprise Cloud Savings:

1. Reliability is now "By Default"

In the past, making sure your applications didn't crash if a data centre went down cost extra money and complexity. Azure is now rolling out features like "Zone Redundant NAT Gateway V2" (a fancy term for a secure internet exit door) at no additional cost.

To put it in plain English, it’s like having a spare tyre included in the price of the car, rather than having to buy it separately. If one part of the network fails, your AI agents can keep working without you paying extra for the privilege.

2. Faster Thinking = Lower Bills

This is a huge FinOps secret. In the cloud, time is money. Literally. If you are training an AI model or if your Agentic AI is processing data, you pay for every second those computer chips are running.

Azure’s update includes faster connections between these chips (using something called InfiniBand). The value here is straightforward: if the network is faster, the job finishes quicker. If the job finishes quicker, you pay less. Simple as that.

Governance: Keeping the Robots in Check

One fear I hear from executives is, "If these AI agents are autonomous, how do I stop them from doing something stupid?"

This update adds some serious guardrails. They’ve introduced a DNS Security Policy. Think of this as a bouncer at the door of a club. It stops your AI agents (or your staff) from accidentally connecting to malicious websites or "bad neighbourhoods" on the internet.

It enables you to block known bad actors automatically. This is crucial for governance because it means you can let your AI agents run freely, knowing the network layer itself is stopping them from wandering off where they shouldn't.

What This Means for Your Cloud Bill (The Money Talk)

Now, let's look at that £50k+ spend. How do you use this news to optimise it?

1. Ask about the "Free" Upgrades I’d suggest asking your cloud team this week: "Are we using the new Zone Redundant gateways? I read they might be cost-neutral now." You’d be surprised how often teams stick to old, expensive setups just out of habit.

2. Consolidate Security Tools Azure is adding security features natively (built-in). If you are currently paying a third-party vendor £5,000 a month for basic DNS security, you might be able to cancel that contract and use the Azure version instead. It’s worth checking.

3. Watch the "Egress" Fees Agentic AI moves a lot of data around. While this update makes moving data inside Azure faster, moving data out to the internet still costs money. Keep an eye on that line item.

The Future: Stay Relevant

To stay optimised, you need to treat your cloud spend like a garden, not a building. You can't just build it and walk away; you have to prune it.

This Azure update is a clear signal: the future is heavy, autonomous AI workloads. If your infrastructure is set up the "old way" (slow, manual, fragile), you will overpay to get subpar results.

Pointers to remember:

• Reliability: You can likely get better uptime now without paying more. Challenge your team to prove they are using these new features.

• Speed: Faster networks mean lower compute bills for AI. Monitor your "training costs"—they should be going down, not up.

• Security: Use the new native guardrails to govern your AI agents safely.

It’s probably time to be a bit demanding with your cloud team. The technology is getting better and cheaper per unit of performance—make sure your bill reflects that!