Broadcom and Carahsoft win $970 million defense contract

The Defense Information Systems Agency awarded Broadcom Inc. (NASDAQ: AVGO) and Carahsoft Technology Corp. a five-year, $970 million blanket purchase agreement to provide software solutions to multiple Department of Defense agencies.

The agreement covers private cloud infrastructure, security and other Broadcom solutions for DISA, Fourth Estate Agencies, the U.S. Air Force, U.S. Space Force and Combatant Commands. Carahsoft serves as the authorized Broadcom distributor under the contract.

The contract streamlines acquisition of the VMware Cloud Foundation platform, consolidating procurement for private cloud infrastructure, tactical edge operations, Zero Trust security and modern application development under a single agreement. The deal also includes VMware vDefend, VMware Avi Load Balancer, and Broadcom's Clarity and Rally management solutions.

VMware Cloud Foundation combines public cloud capabilities with on-premises security and performance benefits. The platform supports traditional, cloud native and AI applications on a unified system. An embedded Kubernetes service enables agencies to build and deploy containerized and virtualized applications.

According to Broadcom's analysis, upgrading to a modern private cloud with VMware Cloud Foundation can deliver up to twice the cost savings compared with traditional three-tier infrastructure and up to three times the savings compared with native public cloud solutions. The savings come primarily from reduced hardware, facilities and IT payroll expenses.

The agreement includes professional services and technical training platforms to accelerate VMware software deployment. The contract prioritizes building and maintaining Security Technical Implementation Guides for Broadcom offerings to establish standards across the federal government.

"By consolidating licensing, simplifying procurement and delivering a modern private cloud, we are helping the agency and the agencies it serves to accelerate secure digital transformation at scale," said Regan McGrath, President, Americas, Broadcom.

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