Services Australia is making a substantial commitment, allocating nearly $94 million to renew its VMware licensing and support agreements for the next three years. This significant investment is the backbone of critical programs like Centrelink and Medicare, underscoring their importance to the nation.
What’s Changed in the New Agreement?
This new deal is a step up from the previous two three-year contracts, which collectively cost $78 million from 2021 to 2024. Now, you’re looking at a 20% increase in expenditure. This increase, according to Services Australia, is due to the need for continuous software support and the consolidation of previous agreements. The implications of this increase in costs will be further explained in the following sections.
Why the Higher Costs?
You might wonder why the costs have jumped. Services Australia hasn’t explicitly stated if the increase is due to more significant usage or price hikes after VMware’s acquisition by Broadcom. In 2022, Broadcom announced its $86 billion acquisition of VMware, leading to reports of increased licensing fees as customers transitioned to a new per-core subscription model.
Long-standing Relationship with VMware
Services Australia, previously known as the Department of Human Services, has partnered with VMware since 2009. Over the years, multiple licensing deals have been inked, with the most recent deal amounting to $44 million for both hardware and software.
Looking Ahead: An Architecture Review
Change is on the horizon. Services Australia’s Chief Information and Digital Officer, Charles McHardie, unveiled plans for this year’s comprehensive architecture review. This review, which will meticulously examine both new and longstanding systems, is set to pave the way for future investments and improvements, instilling a sense of optimism for the future.
By staying informed about these updates, you can gain a deeper understanding of how Services Australia is positioning itself to meet future demands. Rest assured, our unwavering commitment to the reliability of essential services like Centrelink and Medicare remains steadfast.
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