Defence reportedly orders a move away from VMware

An internal mandate is said to cover every part of the department that uses VMware, as licensing costs climb under Broadcom.

30 October 2026 1 min read tech.sydney newsroom

Australia’s Department of Defence is reducing its use of VMware under an internal mandate, according to anonymous sources quoted by iTnews. Defence declined to comment.

What we know

The mandate reportedly covers every part of Defence that uses VMware products. Its formal status is unclear.
It was reportedly issued around September 2025, about when the price increase became known and months before a $178 million VMware licence renewal was revealed.
Defence has not named a replacement.

Why

Licensing costs are set to double after Broadcom bought VMware in late 2023 and moved customers to subscription pricing. Sovereignty concerns are also reportedly a factor.

Others are moving too

Service NSW is moving its container platform from VMware to Red Hat OpenShift. The challenge for every organisation making the switch is the same: administrators with years of VMware experience have to retrain and adopt a different design approach.

Sources

iTnews

This story summarises original reporting by the outlets above. Read their coverage for full detail.

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