ATO bundles Broadcom-owned licenses into single $109m deal

The Australian Taxation Office has bundled VMware and CA Technologies' licenses into a single $109 million renewal.

The move coincides with the expiry of the ATO’s $69 million agreement for CA’s suite of mainframe software signed in March 2021.

While its current contract with VMware, valued at $28.6 million, isn’t set to expire until January 2026, the ATO appears to have proactively wrapped it into this renewal alongside CA for another three years.

Both CA Technologies and VMware are owned by Broadcom: the chipmaker bought CA Technologies in 2018 and completed its deal to buy the virtualisation software provider in November 2023.

In a statement to iTnews, the ATO confirmed it had renewed existing licenses and support for CA Mainframe and VMware software.

It also confirmed it had completed a long-planned mainframe uplift, replacing its former IBM z14 system with Big Blue’s z16 platform in 2024.

The national revenue agency recently flagged plans to cut back on its technology outsourcing to the tune of $31.9 million this current financial year.

Revealed in the ATO’s latest corporate plan in September, the ATO said its 2024–25 focus [is] on “reduced outsourcing of information technology, service delivery and data analytics work, with an expected reduction of $31.9 million in 2024–25 in outsourcing expenditure”.