This week’s updates across Microsoft Cloud reflect a clear direction: deeper AI integration, stronger security, and scalable innovation. From Copilot’s expanding agent capabilities to Azure’s Agent Factory and Microsoft Research’s Dion optimizer, the pace of transformation is accelerating. I’ve curated the most impactful updates from Microsoft’s own blogs and documentation—and taken a deeper dive into one that’s reshaping how we train large models.
Dion: A New Era in Model Optimisation
One of the more interesting developments this month comes from Microsoft Research: the introduction of Dion, a new optimisation method designed for training large-scale AI models more efficiently.
Dion orthonormalises only a top-rank subset of singular vectors, dramatically reducing the computational and communication overhead typically associated with training foundation models like LLaMA-3. This enables faster convergence, lower resource consumption, and better scalability across distributed environments.
Why this matters for business:
- Cost Efficiency: Dion reduces compute cycles, directly lowering cloud infrastructure costs for enterprises running large-scale AI workloads.
- Speed to Market: Faster training means quicker iteration cycles, enabling rapid deployment of new models and features.
- Sustainability: Optimised resource usage supports greener AI practices, aligning with ESG goals.
- Scalability: Dion’s distributed-friendly design is ideal for organizations scaling AI across hybrid or multi-region environments.
Dion: the distributed orthonormal update revolution is here
Microsoft Cloud Highlights:
Azure
- Customer-managed key encryption is now supported for Azure Cosmos DB for MongoDB vCore, allowing organisations to control encryption keys via Azure Key Vault
Microsoft 365 (Technically in July, but i haven’t published for a whole so I think this is ok)
- The Cloud Update feature in the Microsoft 365 Apps admin center now supports custom rollout waves, exclusion windows, and rollback, simplifying update management for IT admins
Security
- Microsoft Security launched the Secure Future Initiative (SFI) Patterns and Practices, a library of actionable patterns and practices to help organizations scale security operations. Microsoft Sentinel is evolving into a data lake-powered SIEM, and the Phishing Triage Agent is now in public preview
Dynamics 365
- The 2025 Release Wave 2 introduces early access features across Sales, Customer Service, Field Service, and Finance. Highlights include AI-powered agents, enhanced scheduling tools, and deeper Microsoft 365 integration
Power Platform
- New governance features allow admins to view usage metrics for Copilot in Power Apps, extend IP firewall support, and deploy unified environments across Power Platform and Dynamics 365
LinkedIn Network Highlights:
Back in July Chris McGuire shared a post discussing teh latest episode of Transformers where Frank Sweeney, CIO of the Arizona Department of Child Safety, reveals how his unique career journey led him to one of the most impactful roles in government.
Although we did cover this in last week’s Podcast, it is worth re-sharing David Rowley‘s post The speed of AI, the discipline of human oversight: how I built a migration assessment tool in just seven days.
I can always count on Azhar Amir Mohammed to give me a good read, and one of his latest posts is no exception Speed of Thought: How ChatGPT-5 Will Redefine the operating model
I would be incredibly remiss if I did not call out Mark Hughes‘s recent announcement around the annual launch of IBM’s Cost of a Data Breach Report.
Both Adnan Aurangabadwala & Biju Melayil Shanmugam posted job updates for various roles in our Microsoft poractice please see below for more information.
The Microsoft Cloud Blog 
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