# Data#3 Secures $3B Federal Azure Contracts

Data#3, a Brisbane-based Microsoft reseller, has secured nearly **$3 billion** in federal contracts within the first two months of the 2026-27 financial year, primarily through the VSA6 panel and Department of Defence Azure agreements. These multi-year contracts, extending through 2031, involve licensing for Microsoft 365, Azure, and Copilot across 38 Commonwealth agencies and significant Azure cloud services for Defence. This concentration of contracts with Microsoft Azure occurs despite recent Australian government procurement reforms aimed at reducing vendor lock-in, signaling ongoing challenges for diversification in cloud procurement.

- The VSA6 panel contract, valued at approximately **$1.06 billion** (awarded July 2026), covers Microsoft licensing for multiple federal agencies, highlighting a major commitment to Microsoft cloud products.
- The Department of Defence awarded at least **$495 million** in Azure contracts via Data#3 under the Software and ERP Marketplace Panel, emphasizing Defence's reliance on Microsoft cloud infrastructure.
- A separate AWS Top Secret Cloud contract valued near **$2 billion** covers Defence and 10 security agencies, indicating parallel multi-vendor cloud engagements.
- Procurement professionals should note the strategic implications of vendor concentration on Microsoft Azure despite diversification policies, which may affect future cloud sourcing strategies and competitive positioning.
- Contractors and vendors should evaluate opportunities within the VSA6 panel and Defence cloud procurements, considering the long-term nature of these agreements through 2031 and the potential for complementary services around Microsoft Azure deployments.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Cloud Services
**Published:** September 28, 2026

### Government Entities
- Digital Transformation Agency (DTA)
- Department of Defence
- Services Australia
- Australian Digital Health Agency
- Australian Taxation Office (ATO)

### Vendors
- Data#3 (prime contractor)
- Microsoft ()
- Amazon Web Services ()
- Oracle ()

### Sources
- [Data#3's $3B Federal Haul Fuels Azure Lock-In Fears](https://tech-insider.org/au/data3-azure-federal-lock-in-2026) - tech-insider.org