No Internet, No Problem: Microsoft’s New Offline Cloud and Excel Agent Mode

Imagine running Microsoft’s cloud entirely on your own terms. This week, Microsoft’s Azure Local and Microsoft 365 Local go live, letting governments and regulated industries run mission-critical workloads and AI models completely offline. Meanwhile, Excel’s Agent Mode expands to Europe and even works with files stored on your own PC, and Windows 11’s latest preview update pumps up system reliability with a built-in network speed test, Sysmon integration and more.

Thanks to Cayosoft for sponsoring this episode!

Links and resources

• Azure Local, Microsoft 365 Local Go GA to Power Secure, Offline Operations
• Microsoft Sovereign Cloud adds governance, productivity and support for large AI models securely running even when completely disconnected  – The Official Microsoft Blog
• What’s New in Excel (February 2026) | Microsoft Community Hub
• Microsoft just released an actually good Windows 11 update — with system performance improvements, better wake from sleep, and more | Windows Central

Episode overview

In this episode of This Week in IT, I cover:

• Azure Local and Microsoft 365 Local go GA, enabling governments and regulated industries to run cloud services and AI completely offline — with hybrid options that still respect strict data residency rules.
• Europe’s digital sovereignty push intensifies, including France developing its own government‑only collaboration platform, “Visio,” as a homegrown alternative to Teams and Zoom.
• Copilot Agent Mode expands to Europe, bringing powerful automation, analysis, and even web‑search‑driven workflows to Excel — plus the long‑awaited ability to work with local files.
• Windows 11 releases an optional performance update, improving system reliability, integrating Sysmon, adding a built‑in network speed test, expanding Windows on Arm64 tool support, and more.