"The US General Services Administration is flogging discounts of up to 64 percent under a OneGov Agreement covering Broadcom's VMware portfolio - though the actual hypervisor that made VMware famous isn't included. The framework covers VMware Tanzu Platform, Tanzu Data Intelligence, Avi Load Balancer, vDefend, and the Tanzu AI Starter Kit. Notably absent: VMware vSphere Foundation, the virtualization platform most agencies actually use."
""This agreement represents another major milestone under the OneGov initiative and advances President Trump's call to accelerate AI adoption across government," said Josh Gruenbaum, Federal Acquisition Service Commissioner. Broadcom framed the deal as helping agencies extract more value from existing investments in its private cloud platform while "achieving zero trust through multi-layer defense-in-depth." Those existing investments are considerable. The US Army and other agencies signed a reportedly $477 million blanket purchase agreement for VMware licenses in 2024, while the Navy inked a $173 million deal."
"The discounts secured by the GSA expire in May 2027, giving Federal tech teams limited time to decide whether to hitch their container, security, or AI strategies to Broadcom's wagon. That might not be a decision to rush. Broadcom's acquisition of VMware continues generating some customer fallout, with license and product changes prompting customers large and small to reconsider their commitment to the platform."
GSA secured discounts up to 64% under a OneGov Agreement covering Broadcom's VMware portfolio while excluding VMware vSphere Foundation. The framework includes Tanzu Platform, Tanzu Data Intelligence, Avi Load Balancer, vDefend, and the Tanzu AI Starter Kit. Broadcom positioned the agreement as extracting more value from private cloud investments and enabling zero trust. Federal agencies hold substantial VMware investments, including a reported $477 million Army deal, a $173 million Navy deal, and a near-$1 billion DISA contract via Carahsoft. The discounts expire in May 2027 amid customer fallout and legal disputes tied to Broadcom's acquisition of VMware.
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