Amazon Web Services (AWS) is to pilot a new AI-designed carbon-removal material at one of its data centres as part of a new strategic partnership with AI start-up Orbital Materials.

Why?

As data processing and storage requirements increase, data centres must handle increasingly complex AI workloads, pushing their energy and cooling demands ever higher. AWS, like other operators, has set ambitious carbon reduction targets, but purchasing offsets can be costly and less transparent. In a new move, partnering with Orbital and integrating a new carbon-removal material at an AWS data centre by 2025, the company is aiming to directly remove more CO₂ from its airflow than it produces, potentially at a lower cost than traditional offsets. It’s hoped that this approach will not only help AWS meet its sustainability commitments but also address the escalating operational and environmental pressures driving these changes.

Who is Orbital and What is the AWS Deal?

Orbital, launched at the end of 2022 and led by CEO Jonathan Godwin, operates from facilities in Princeton, New Jersey and London. The start-up uses an AI-driven platform to rapidly discover and test advanced materials for climate-focused solutions (work that would traditionally take years in a lab). According to Amazon’s website, since establishing its research and development lab in early 2024, Orbital has seen a tenfold improvement in its carbon-removal material’s performance, highlighting the revolutionary potential of AI-driven materials discovery.

Through its multi-year partnership with AWS, Orbital will supply a carbon-removal material for integration at an AWS data centre by 2025. The goal is to capture more CO₂ than the facility emits, helping AWS meet its carbon reduction targets and potentially offering a more cost-effective, transparent alternative to traditional offsets.

Carbon Removal at the Source

The principal idea behind the AWS–Orbital collaboration is to use data centres themselves as a platform for direct carbon capture. Data centres rely on vast, sophisticated cooling systems to maintain the optimal temperatures required by the thousands of servers inside. These cooling systems constantly circulate large volumes of air, providing an excellent opportunity to integrate a carbon-removal material that can filter out CO₂ molecules as they flow through.

How Does Orbital’s Carbon Removal Material Work?

Orbital’s CEO, Jonathan Godwin, recently explained the nature of the advanced carbon-removing material it produces, describing it as “like a sponge at the atomic level”. For example, the material’s tiny cavities are sized to interact specifically with CO₂, thereby allowing it to trap the gas while letting other, less harmful components of the air pass freely. By 2025, AWS plans to pilot this cutting-edge carbon-removal technology in one of its data centres, testing its scalability and real-world performance.

A More Cost-Effective Alternative

While some operators resort to carbon offsets to reduce their net emissions, these can be expensive and often involve complex verification processes. By capturing carbon directly from the air at the source, data centres could theoretically bypass intermediaries and reduce their reliance on offset markets. According to Jonathan Godwin, the added cost of incorporating Orbital’s carbon-removal material amounts to roughly 10 per cent of the hourly charge of renting a GPU chip for AI training, significantly less than the price of most carbon offsets. This cost-effectiveness could make the proposition commercially attractive, helping data centre operators improve their environmental performance without eroding their bottom line.

Efficiency and Water Usage

While reducing CO₂ emissions is a crucial goal, the AWS–Orbital partnership also aims to tackle other environmental challenges associated with large-scale computing infrastructure. For example, data centres are thirsty operations, requiring huge amounts of water to maintain their cooling systems. Therefore, the ability to integrate more efficient, high-performance materials into cooling processes could lead to reductions in both energy and water consumption.

Speaking about the partnership (on the Amazon website), Orbital’s CEO Jonathan Godwin said, “Our partnership with AWS will accelerate the deployment of our advanced technologies for data centre decarbonisation and efficiency. Working with the market-leading AWS team will accelerate our development of products in cooling, water utilisation, and carbon removal.” In a similar vein, Howard Gefen, General Manager of AWS Energy & Utilities, stated, “AWS looks forward to collaborating with Orbital and their mission to drive data centre decarbonisation and efficiency.”

By designing materials that can capture carbon, improve cooling efficiency, and potentially reduce water consumption, Orbital’s platform looks as though it could open new pathways for sustainable data centre operations. The success of these early trials could lead the way to more widespread adoption of such materials throughout the data centre industry.

Technical and Logistical Challenges

Of course, the introduction of any new technology brings its own challenges. For example, trying to integrate an advanced filtration material into a complex data centre cooling system will alter airflow characteristics. Although this change could increase the workload on existing fans and pumps, Orbital believes the net effect will be positive. Also, the slightly higher energy required for pumping air through the new filters should be more than compensated for by the benefits of lower emissions and improved resource efficiency.

Another pressing consideration is handling the captured CO₂. Once the gas is isolated from the airstream, what then? While specific details of exactly how the carbon will be stored or reused are currently not being made clear, the partners will, no doubt, need robust protocols for managing the extracted greenhouse gases sustainably. Ensuring safe, long-term storage or practical utilisation of this captured carbon is likely to be key to the project’s overall success.

Not The Only One Involved In Data Centre Carbon Capture

It should be noted here that Orbital is not alone in pursuing on-site carbon capture in data centres. For example, other tech giants such as Alphabet (Google) and Meta have filed patents related to similar concepts, and start-ups like 280 Earth are also working on solutions to tackle data centre emissions at source. However, what appears to distinguish Orbital’s approach is its ability to move fast and iterate quickly. By using generative AI to design and test materials virtually, Orbital can arrive at promising formulations far faster than traditional lab-based methods.

This accelerated materials discovery process looks like giving Orbital a potential edge in developing specialised compounds. For example, its carbon-removal material is tailored to work effectively with hot, CO₂-laden air exiting data centre servers. Rather than building a generic carbon filter, Orbital can produce optimised materials that function well under real-world operational conditions.

Wider Applications and Open Access to AI Models

Beyond this single pilot project, Orbital’s technology could also have a much broader impact. For example, the start-up plans to make its open-source AI model ‘Orb’ available to AWS customers via Amazon SageMaker JumpStart and AWS Marketplace. This means that other companies tackling their own materials and climate challenges, whether in semiconductors, batteries, or electronics, will soon have a powerful new tool at their disposal.

Such accessibility is critical. Orbital’s AI-driven approach, therefore, does not appear to just offer one clever solution to a pressing sustainability issue, but could represent a new methodology for discovering and optimising advanced materials. By making these capabilities available in the cloud, Orbital and AWS hope to democratise materials R&D, thereby, hopefully, empowering a wider range of enterprises to contribute to sustainability-driven innovation.

Keeping Pace with Sustainability Targets

The urgency driving projects also comes from the large technology companies having pledged to reach net-zero carbon emissions within the coming decades. Yet, as AI models grow more complex, requiring ever more computational power, energy usage soars. Without new interventions, these data centres risk undermining carefully set climate targets.

AWS, as the world’s largest cloud-computing provider by revenue, is under particular scrutiny. Millions of customers rely on its infrastructure, and sustainability commitments have become a point of competitive differentiation. By embracing on-site carbon capture and making advanced materials more accessible, AWS is banking on not only working to meet its own targets but potentially setting a precedent that others in the industry may follow.

Potential Ripple Effects Across the Sector

If the AWS pilot proves successful, it could catalyse a wave of adoption in data centres across the globe. On-site carbon capture may offer a more transparent and reliable way of verifying emissions reductions than conventional offsets. It might even allow data centre operators to generate their own carbon credits by capturing more CO₂ than they produce, thereby transforming a cost centre into a revenue stream.

Such a shift would, however, require careful economic, regulatory, and environmental considerations. For now, the AWS–Orbital initiative is a test (albeit part of a “multi-year” commitment), but one that carries high stakes and considerable promise. This early pilot could be said to represent a proactive step towards embedding sustainability at the heart of AI-driven infrastructure and an opportunity to ensure that the digital revolution does not come at an unacceptable environmental cost.

What Does This Mean For Your Organisation?

In many ways, the AWS–Orbital pilot project encapsulates the evolving relationship between digital infrastructure and the urgent need to address our environmental responsibilities. By attempting to capture carbon on-site rather than relying solely on offsets, AWS is exploring a pathway that could be more transparent, cost-effective, and efficient. Orbital’s rapid, AI-driven approach to materials discovery highlights a significant shift in how quickly breakthroughs can be achieved, and the involvement of AWS, arguably one of the most influential players in the sector, puts added weight behind this experimentation.

However, the path forward is not going to be without its hurdles. For example, integrating new materials into data centres, ensuring that carbon can be meaningfully stored or reused, and consistently meeting demanding performance standards will all require careful planning and meticulous execution. Also, the costs, although promising at present, are likely to evolve alongside technological improvements and market conditions, meaning that careful economic analysis will remain crucial.

Beyond this specific partnership (due to last an unspecified, but probably a small number of years), it suggests that the integration of advanced materials and AI-driven R&D could help carve out a more sustainable future for data centres worldwide.

As talking to AI is set to become mainstream, this video takes a look at speaking directly with ChatGPT and includes a couple of examples of what it can be used for. It’s expected this will mode of interaction will become second nature very soon.

[Note – To Watch This Video without glitches/interruptions, It may be best to download it first]

With many users adopting dark mode in the new Microsoft Outlook, including a transparent background for images such as logos or signatures ensures your emails look professional across both light and dark themes.

Why It Matters:

– Many users enable dark mode, which displays emails on a black or dark-coloured background.

– Images with a white background appear as distracting blocks against the dark background, disrupting the email’s appearance.

– Transparent images seamlessly adapt to both light and dark modes, maintaining a polished look.

How to Use Transparent Background Images:
Create a Transparent Image:

– Use a design tool (e.g., Photoshop, Canva, or any free online editor) to remove the background from your image.

– Save the file as a PNG format to preserve transparency.

Add the Transparent Image to Your Email Signature:

– Open Outlook and go to Settings > View all Outlook settings > Mail > Compose and reply.

– Under the Email signature section, upload the transparent PNG image and adjust its placement.

Test Your Email in Dark Mode:

– Send yourself a test email and view it in both light and dark modes to ensure the image displays correctly.

Australia’s government has enacted legislation prohibiting children under 16 from accessing social media platforms to protect them from the harmful effects of online content, such as cyberbullying, exploitation, and exposure to inappropriate material.

The Online Safety Amendment 

Under the new legislation, known as the Online Safety Amendment (Social Media Minimum Age) Bill 2024, only just passed by the Australian Parliament in November, the ban will apply to social media platforms including Facebook, Instagram, TikTok, Snapchat, Reddit, and X (formerly Twitter). However, messaging services, gaming platforms, and educational sites like YouTube are exempt from these restrictions, reflecting their different usage and content dynamics.

Toughest Laws 

Australia’s decision to enact what are now the world’s toughest social media regulations has ignited a global debate about the role of social media in young people’s lives and the responsibility of tech companies in safeguarding their well-being.

Why Has Australia Taken This Step? 

The new legislation, which has been championed by Prime Minister Anthony Albanese, is seen as a necessary measure to protect children from the “harms” of social media. It addresses growing concerns about the impact of online platforms on young people’s mental and physical health, including issues like cyberbullying, exposure to inappropriate content, and the addictive nature of these apps.

As Prime Minister Albanese says, “Parents deserve to know we have their backs,” highlighting the emotional toll on families struggling to manage their children’s online activity. A YouGov poll, for example, has revealed that 77 per cent of Australians support the ban, reflecting a national consensus on the need for tighter controls.

The decision follows mounting evidence of the detrimental effects of social media on young users. A recent survey by the charity Stem4 revealed that 86 per cent of people aged 12 to 21 are worried about the negative impact of social media on their mental health. Specific concerns include cyberbullying, scams, predatory behaviour, and harmful content promoting self-harm or disordered eating. These issues have, in tragic cases, contributed to young people’s deaths by suicide, amplifying calls for decisive action.

What Does the Law Actually Entail? 

The new legislation mandates that social media platforms must prevent under-16s from accessing their services within 12 months. Non-compliance could result in fines of up to AUD 50 million (£25.7 million). The ban will apply to platforms like X (formerly Twitter), Instagram, TikTok, Snapchat, and Facebook, while sites like YouTube and LinkedIn have been excluded due to their nature (or existing restrictions).

Enforcement 

Enforcement will be overseen by the eSafety Commissioner, with age verification technology expected to play a crucial role. However, details about the specific mechanisms remain unclear, sparking concerns about feasibility and privacy. Critics argue that without robust and reliable technology, such as biometric checks or ID-based verification, children could easily bypass restrictions using virtual private networks (VPNs) or fake accounts.

Unlike similar laws in other countries, Australia’s ban provides no exemptions for parental consent or existing users, making it the most stringent to date.

The Global Context and Potential Impact 

With this move, Australia now joins a growing list of countries seeking to regulate social media access for young people. For example, Ireland and Spain already enforce a minimum age of 16, while France requires parental consent for under-15s to join such platforms. However, research has shown that children frequently circumvent these restrictions, raising doubts about their effectiveness.

In the UK, for example, the issue of underage social media use has also drawn significant attention. A survey by Ofcom, the UK’s media regulator, found that 22 per cent of children aged 8 to 17 lie about their age to access adult accounts. The lack of effective age verification has led to widespread exposure to harmful content. The Online Safety Act, due to take effect in 2025, will require platforms to implement stricter age verification, though critics argue it does not go far enough.

Could The UK Introduce Similar Legislation? 

In response to Australia’s ban on social media for under-16s, UK Technology Secretary Peter Kyle has indicated similar measures are “on the table” but has emphasised the need for careful consideration to avoid unintended consequences.

The Online Safety Act 2023 in the UK already requires social media platforms to implement age restrictions and robust verification systems to protect children, but the government is exploring additional steps, including research into the impact of social media on young people, signalling possible stricter regulations.

Critics have warned, however, that bans could push children to unregulated platforms or lead to falsified ages, complicating enforcement, while also raising concerns about limiting access to information and social connection. The UK government is, therefore, proceeding cautiously, consulting widely to balance online safety with preserving children’s digital freedoms.

Responses from Tech Companies 

It’s perhaps no surprise that the new Australian law has met with fierce resistance from tech giants. Companies like Meta (owner of Facebook and Instagram), Snap (the parent company of Snapchat), and TikTok have criticised the legislation as vague and impractical. Meta argues that the law “ignores evidence” from child safety experts and fails to address its stated goal of protecting young users.

LinkedIn, however, has taken a different stance, asserting that its professional networking platform is “too dull for kids” and does not attract underage users. By distancing itself from mainstream social media, LinkedIn appears to be hoping to avoid the logistical and financial burden of implementing age verification measures.

TikTok Australia has also raised concerns about the government’s approach, warning of “unintended consequences” stemming from rushed implementation. The platform’s submission to lawmakers stressed the need for more research and collaboration to develop effective solutions.

Challenges and Criticisms 

While many support the ban as a necessary step to protect children, others have labelled it a “blunt instrument” that oversimplifies a complex issue. Critics point out several challenges, including:

– Privacy risks. The reliance on age verification technology raises significant privacy concerns. Biometric or ID-based systems could compromise users’ personal data, creating new vulnerabilities.

– Ineffectiveness. Past attempts to restrict social media access have often been undermined by tech-savvy youths. VPNs, fake accounts, and shared logins enable children to bypass restrictions, potentially driving them towards less regulated corners of the internet.

– Exclusion of young voices. Advocacy groups like the eSafety Youth Council have criticised the Australian government for excluding young people from the legislative process. They argue that teenagers, as primary stakeholders, should have a say in shaping policies that directly affect them.

– Potential for social isolation. For many young people, social media serves as a primary mode of communication and community-building. Removing access could exacerbate feelings of isolation, particularly for those in remote or marginalised communities.

– Impact on parents. The ban places significant responsibility on parents to enforce the rules, even as they grapple with the practicalities of managing their children’s online activity.

A Growing Global Debate 

Australia’s legislation has undoubtedly set a precedent, prompting other nations to re-evaluate their own policies. Norway, for example, has already expressed interest in adopting similar measures, while France and the UK are monitoring the situation closely. The debate highlights the delicate balance between protecting young people and preserving their autonomy in an increasingly digital world.

As the world watches Australia’s bold experiment, it’s clear that the conversation about children and social media is far from over. Whether other countries will follow suit remains to be seen, but the spotlight is firmly on the responsibilities of tech companies, governments, and parents in shaping a safer online future for the next generation.

What Does This Mean For Your Business? 

Australia’s groundbreaking legislation banning under-16s from social media represents a bold attempt to address the pressing challenges of unregulated online access for young people. By setting the strictest age limits globally, the country has ignited a conversation about the risks of social media, the responsibilities of tech companies, and the role of governments in safeguarding children.

Supporters view the move as a necessary step to combat issues like cyberbullying, exploitation, and harmful content, prioritising children’s well-being over corporate interests. However, it also presents significant challenges for social media companies, which must invest in robust age-verification systems and may lose a vital demographic that drives engagement and growth. Advertisers, too, are likely to feel the impact, particularly in industries targeting younger audiences. Businesses dependent on social media for branding and sales may need to rethink strategies, especially those aimed at families and younger consumers.

Critics warn that the policy may push children to unregulated platforms, complicate enforcement, and raise privacy concerns while limiting access to digital spaces that play a role in communication and learning. Internationally, the legislation has sparked interest, with nations including the UK monitoring its progress while recognising the complexities of similar measures.

Australia’s decision, therefore, challenges governments, tech companies, and society to rethink how children engage with social media. Its success or failure will influence global debates on online safety, shaping not only protections for young users but also the futures of businesses and advertisers online.

In this Tech Insight, we look at what Azure Foundry is, the challenges it addresses, its key features and benefits, and its role for businesses hoping to embrace the AI revolution.

What Is Azure Foundry?

Azure Foundry is Microsoft’s latest innovation in AI, offering a comprehensive single platform that unifies the design, deployment, and management of AI solutions while seamlessly integrating cutting-edge tools with practical business needs. The Azure Foundry platform is designed to enable developers, IT professionals, and decision-makers to create, customise, and scale AI-powered solutions effectively.

Through its streamlined toolchain, advanced management features, and integration with popular development environments, Microsoft has positioned Azure Foundry as a one-stop solution for organisations aiming to leverage AI to its fullest potential.

Why Azure Foundry?

The platform was essentially developed in response to two pressing trends. First, while AI has proven transformative, it seems that businesses often struggle to bring experiments into production. For example, a Deloitte study showed that 70 per cent of organisations have only managed to productionise 30 per cent or fewer of their generative AI experiments. Secondly, AI’s rapid evolution has overwhelmed businesses with fragmented tools, complicating the adoption process.

Microsoft therefore identified the need for a unified platform to enable businesses to turn emerging AI capabilities into tangible business outcomes, and Azure Foundry embodies Microsoft’s vision for empowering organisations to streamline their AI workflows while reducing time-to-market and ensuring scalability. As Microsoft says, “Azure AI Foundry helps bridge the gap between cutting-edge AI technologies and practical business applications, empowering organisations to harness the full potential of AI efficiently and effectively.”

What Problems Does Azure Foundry Solve?

Azure Foundry addresses several key challenges faced by businesses adopting AI, which are:

Complexity in development and management. Many organisations face difficulties coordinating various AI tools and technologies. Azure Foundry has been designed to simplify this by unifying its capabilities into a single platform, accessible through familiar environments like GitHub and Visual Studio. As Microsoft says, “We’re unifying the AI toolchain in a new Azure AI Foundry SDK that makes Azure AI capabilities accessible from familiar tools, like GitHub, Visual Studio, and Copilot Studio.”

Scalability. Transforming AI proofs of concept into robust production systems can be daunting, and Azure Foundry’s tools and infrastructure facilitate the seamless scaling of AI solutions.

Measurement and ROI. Decision-makers often struggle to evaluate the effectiveness and financial impact of AI initiatives. Azure Foundry has features for tracking performance and aligning AI applications with organisational goals.

Security and compliance. As AI adoption increases, so do concerns about data privacy and regulatory compliance. Azure Foundry’s integrated features for data governance and secure workflows provide organisations with confidence in their AI deployments.

Core Features and Benefits

Azure Foundry combines state-of-the-art tools with integrations to provide a powerful yet user-friendly platform. Some of its standout features include:

– A unified toolchain. The Azure AI Foundry SDK integrates with tools like Visual Studio, GitHub, and Copilot Studio, streamlining AI development and deployment.

– Azure AI Studio. Now upgraded into an enterprise-grade management portal, this feature allows teams to oversee AI applications, manage resources, and optimise workflows from a central location.

– Azure AI Agent Service. This feature automates routine tasks through intelligent agents, thereby freeing teams to focus on strategic priorities. It supports integration with existing enterprise data sources, ensuring workflows are tailored to specific organisational needs.

– A comprehensive AI model catalogue. With over 1,800 AI models, including the latest from OpenAI and industry-specific offerings, the platform allows businesses to choose and customise models to fit their unique requirements.

– Scalability and flexibility. Businesses can deploy models on demand using serverless GPU capabilities, ensuring efficient use of resources while maintaining high performance.

– Enhanced observability. The new management centre experience consolidates vital information such as resource usage and permissions, making governance and compliance easier.

– Guidance and best practices. Azure Essentials provides resources, templates, and reference architectures, helping organisations navigate their AI adoption journey with confidence.

Who Is Azure Foundry For?

Azure Foundry has been designed to cater to a diverse audience, offering tailored benefits for developers, IT professionals, and business leaders alike. Microsoft says, “Azure AI Foundry is designed to empower your entire organisation—developers, AI engineers, and IT professionals—to customise, host, run, and manage AI solutions with greater ease and confidence.”

For developers, the platform’s seamless integration with familiar tools such as GitHub and Visual Studio ensures that they can focus on innovation without the need to spend time learning and mastering entirely new systems before they can start getting any value from them. With access to advanced AI capabilities, developers can build and scale applications quickly, enabling faster delivery of impactful solutions.

IT professionals can also benefit from Foundry’s tools that simplify the management of AI deployments. These features ensure the security and performance of AI systems while streamlining monitoring processes, making it easier for IT teams to align their efforts with organisational objectives. By providing a cohesive infrastructure of this kind, Azure Foundry could reduce the complexity of supporting enterprise-wide AI adoption.

Business leaders too stand to gain from the platform. For example, Azure Foundry delivers actionable insights into the performance and impact of AI initiatives, thereby potentially helping decision-makers to evaluate return on investment and align AI strategies with broader organisational goals. This holistic approach could empower business owners and leaders to drive AI adoption with confidence, ensuring that technological advancements translate into tangible business value.

Criticisms and Challenges

While Azure Foundry appears to be a helpful advancement in AI integration and innovation, it should be noted that it is not without its challenges.

For organisations unfamiliar with Microsoft’s ecosystem, although Microsoft is keen to make it sound like a simple and holistic solution, in reality, the platform may present a bit of a learning curve. The array of tools and capabilities, while comprehensive, could potentially require considerable time and resources for teams to master, especially for those transitioning from other platforms or starting their AI journey from scratch. That said, the value gained may be worth the effort.

Also, cost is another factor to consider. Despite Microsoft’s efforts to introduce cost-effective options, such as serverless GPUs, the overall expense of leveraging Azure Foundry’s extensive features may prove prohibitive for smaller organisations or those with limited budgets. Balancing the platform’s potential value with financial constraints could, therefore, pose a hurdle for many prospective users.

Another challenge lies in its dependence on the Microsoft ecosystem. Organisations that have already invested in alternative cloud platforms may find it difficult to integrate Azure Foundry seamlessly into their existing workflows. Migrating or bridging between ecosystems can introduce technical complexities and potential disruptions.

One more challenge may be that the evolving nature of AI technology could mean that Azure Foundry will need to continually adapt to stay relevant and retain its value to users. While this may ensure access to cutting-edge advancements, early adopters could face periods of transition or disruption as new updates and capabilities are rolled out. This dynamic environment may require organisations to maintain flexibility and allocate resources for ongoing training and adaptation.

What Does This Mean for Your Business?

Microsoft hopes that Azure Foundry will offer businesses a comprehensive platform to streamline and scale their AI operations. For those seeking to adopt AI or expand their current capabilities, it could provide a unified and accessible toolset that integrates seamlessly into familiar development environments. This has the potential to drastically reduce the complexities often associated with AI deployment, thereby making advanced capabilities more accessible across various roles in an organisation.

For businesses, the value of Azure Foundry lies in its ability to bring together disparate tools, enabling faster development cycles and easier management of AI solutions. Developers, IT teams, and decision-makers could use it to collaborate more effectively, benefiting from tools designed to simplify workflows and align AI efforts with organisational goals. This means businesses could use Azure Foundry to turn AI from a conceptual tool into a practical driver of value, capable of delivering measurable outcomes and improving efficiency.

Also, the platform’s scalability should ensure that organisations can grow their AI initiatives without significant bottlenecks. For smaller businesses or those starting out, this scalability may be particularly appealing, offering the ability to adopt advanced AI technologies without a substantial upfront investment in infrastructure. The support for integrating data privacy and compliance measures may further reassure organisations operating in highly regulated industries.

However, it’s also important to approach Azure Foundry with a clear understanding of its challenges. For businesses unfamiliar with Microsoft’s ecosystem, there may be a learning curve, requiring time and resources to unlock the platform’s full potential. Cost considerations may also weigh heavily for smaller organisations, where balancing Azure Foundry’s advanced capabilities with financial constraints could become a critical decision point. Businesses relying on alternative cloud providers may also face integration challenges, and early adopters must prepare for potential disruptions as the platform evolves.

From Microsoft’s perspective, Azure Foundry is a way to solidify its position as a leader in enterprise AI. By creating a unified, scalable, and user-friendly platform, Microsoft is positioning itself ahead of competitors like Amazon Web Services (AWS) and Google Cloud, which have their own AI offerings but may currently lack the same degree of integration and enterprise focus. For the broader market, Azure Foundry raises the bar for what AI platforms can deliver, likely prompting competitors to develop similar unified solutions to remain competitive.

For businesses, Azure Foundry basically represents an opportunity to simplify AI adoption, scale its applications effectively, and align technology investments with strategic goals. While there are challenges to consider, the potential benefits may outweigh the drawbacks for organisations prepared to embrace AI as a transformative tool. Whether you’re looking to streamline operations, enhance customer experiences, or unlock new revenue streams, Azure Foundry could offer a powerful pathway to achieving these ambitions in the age of AI.

A recent study by US-based hosting provider Liquid Web has revealed that slow website performance is costing businesses thousands of pounds per year in revenue and draining resources at an alarming rate.

Slow Websites Costing UK Businesses 

The study, which was based on a survey of 206 business owners from industries ranging from ecommerce to consulting, found that poor website performance costs businesses an average of 15 per cent of their annual revenue. For small businesses earning $119,000 / £93,000 annually, this translates to a loss of approximately £14,000 per year.

In an era where online presence is vital for business success, these findings appear to highlight a critical need for companies to address their digital inefficiencies.

The Financial Toll of Poor Website Performance

According to the survey, over one in ten businesses experienced website downtime over the past year, while 35 per cent dealt with slow loading times. These types of issues not only frustrate users but also significantly impact revenue. For example, businesses reported an average traffic loss of 7.5 per cent due to sluggish website speeds or downtime, with 12 per cent of respondents admitting they lose revenue every month.

Even Worse for Ecommerce Businesses 

For ecommerce businesses, where online transactions form the backbone of operations, the impact appears to be more pronounced. For example, approximately 13 per cent of ecommerce respondents indicated monthly revenue losses, with these losses equating to an 11 per cent annual shortfall. The study also highlighted key moments, such as Black Friday, where businesses estimate they could lose over £900 due to performance-related issues, with slow-loading pages being a major contributor to bounce rates exceeding 50 per cent.

Reputation and Growth Opportunities at Stake 

Beyond immediate financial losses, it seems that poor website performance has ripple effects that hinder long-term growth. For example, two-thirds of businesses reported lost revenue, and 55 per cent acknowledged missing critical growth opportunities due to performance issues. Damage to brand reputation was another significant concern, with 41 per cent of respondents citing this as a consequence, while 33 per cent faced an increase in customer complaints.

Also, the Liquid Web survey revealed that more than a quarter of business owners felt their slow websites caused them to lag behind competitors with more reliable online platforms. In highly competitive sectors such as ecommerce and digital marketing, falling behind rivals can lead to substantial long-term losses.

Responding to the survey results on the Liquid Web website, Tiffany Bridge, Ecommerce Product Manager at Liquid Web, emphasised the customer experience angle, saying: “When pages take too long to load, customers leave—sometimes for good—resulting in lost sales and damaged trust.” 

Barriers to Improvement 

While the need for improvement is evident, many businesses say they face obstacles in implementing necessary changes. For example, the survey showed that cost appears to be the most significant barrier, with half of the surveyed businesses citing it as a limitation. Also, 30 per cent of respondents pointed to a lack of technical expertise as a hindrance. Other challenges included time constraints, unclear ROI, and insufficient resources.

Still Planning Investment 

Despite these barriers, 28 per cent of business owners surveyed said they plan to invest an average of £900 in website improvements ahead of the holiday season by optimising images and code (38 per cent), reducing third-party plugins (32 per cent), and switching to high-performance hosting providers (27 per cent).

The High Stakes of Seasonal Sales 

The stakes are especially high during peak shopping periods like Black Friday (now very popular in the UK too) and Cyber Monday. For many businesses, these days can contribute up to 30 per cent of their annual sales volume. Liquid Web’s study revealed that even just a 1-second improvement in site speed can increase conversion rates by a massive 27 per cent, thereby highlighting the importance of performance during high-traffic events.

Ryan MacDonald, Chief Technology Officer at Liquid Web, also pointed out the importance of scalability, saying: “With the right scalable solutions, businesses can handle busy periods like the holidays without overextending their budget while laying the foundation for long-term success.” 

Turning Challenges into Opportunities 

While the findings paint a concerning picture, it could be said that they also serve as a wake-up call for businesses to turn performance challenges into opportunities. High-performance hosting, proactive optimisation, and strategic scalability are just some of the measures businesses can take to ensure their websites remain reliable and competitive.

It should also be noted here that, although Liquid Web’s study has revealed some important insights, Liquid Web is in the business of providing hosting solutions, meaning that it is perhaps not surprising that a key recommendation of the report is that investing in website performance is not just a technical necessity but a strategic imperative for businesses looking to thrive in a digital-first world.

What Does This Mean for Your Business? 

The findings from Liquid Web’s study essentially show that in today’s ‘digital-first’ world, website performance is not a luxury but a necessity. Businesses across industries are increasingly reliant on their online presence, and the consequences of underperformance appear to be stark. From lost revenue and diminished customer trust to reputational damage and missed growth opportunities, the costs of a slow or unreliable website are likely to be far-reaching. For small businesses, where every pound counts, the financial toll alone can be devastating, as highlighted by the average annual losses of up to £14,000.

What this means for businesses is that addressing website performance issues is no longer optional. However, while the study strongly advocates for investment in high-performance hosting and site optimisation, these recommendations must be considered alongside the practical challenges faced by many businesses, such as limited budgets, technical expertise, and resources. A balanced approach that weighs the costs of improvement against the potential losses caused by inaction may, therefore, be recommended.

The study also serves as a reminder of the competitive edge that reliable website performance can provide. In crowded markets like ecommerce and digital marketing, where customer expectations are higher than ever, businesses with fast, dependable websites are more likely to attract and retain customers. Conversely, those that lag behind risk losing not only sales but also their standing against more digitally agile competitors.

For many businesses, the prospect of investing in better hosting or optimising site speed may seem daunting, but as the data shows, the returns can far outweigh the initial outlay. For example, the study revealed that improving page load times by even a second can lead to a 27 per cent increase in conversions, a powerful incentive to prioritise performance enhancements, particularly during critical sales periods like Black Friday or Cyber Monday.

However, it is also important to approach the findings with some perspective – hosting providers may be viewed as having a vested interest in highlighting the need for better hosting solutions. While this study offers valuable insights, businesses may want to tackle some of the lower-hanging fruit first by (for example) reducing unnecessary plugins, optimising images and code (or implementing caching) before or alongside upgrading hosting solutions.

The message in this case appears to be clear: businesses cannot afford to overlook the impact of poor website performance. Whether through small, incremental improvements or larger investments in high-performance hosting, addressing these issues may be vital not only to protect revenue but also to foster customer loyalty and secure long-term growth. In an increasingly digital economy, those that take proactive steps now should be better positioned to thrive in the years ahead.