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Service NSW Ditches VMware for Red Hat OpenShift

May 18, 2026

1 min read

Key Takeaways

Service NSW is moving off VMware's Tanzu Application Service.
The agency will adopt Red Hat OpenShift on AWS.
The switch may reduce PaaS bills by three-quarters.
Migration is expected to be completed within two years.

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Strategic Implications

This move may indicate a broader trend of organizations seeking cost savings and flexibility by switching from proprietary platforms to open-source alternatives. The adoption of Red Hat OpenShift suggests a focus on containerization and cloud-native applications, which could enhance Service NSW's digital capabilities and reduce vendor lock-in.

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What Happened

Australian Agency Seeks Cost Savings With New Platform

Service NSW is transitioning its digital products from VMware’s Tanzu Application Service to Red Hat OpenShift on AWS, aiming to reduce its PaaS bill by three-quarters. The agency’s CTO, Suneetha Bodduluri, cited increasing costs and potential legacy issues with the Tanzu platform as reasons for the switch. The migration, which will be completed within two years, is expected to enable an entire capability uplift for the agency. This development was first reported by iTnews.

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