archTIS Ltd (ASX:AR9, OTCQB:ARHLF) has moved its NC Protect data security platform into the US Department of Defense (DoD)’s Microsoft DoD365 production environment, taking the software from test settings into a live deployment designed to safeguard production information.
The rollout positions NC Protect inside an operational Microsoft cloud environment used by the DoD, with the software focused on controlling access to sensitive data at the information layer rather than relying solely on perimeter controls. The deployment aligns with the DoD’s broader shift toward Zero Trust frameworks, where access decisions are continuously assessed and enforced.
“The production deployment and license renewal represent a major milestone forward in our US DoD sales opportunity. It demonstrates the U.S. DoD’s intention and continued investment to deploy our product within authorised DoD environments. Not many Australian companies achieve this," archTIS CEO and managing director Daniel Lai said.
"Additionally, the recent announcement by the US Department of Defense chief information officer, Katherine Arrington, mandates that all DoD branches, Military Services and Combat Commands, must achieve target Level Zero Trust as a ‘non-negotiable’ requirement before September 2027. This directive potentially positions archTIS at the forefront of the US DoD’s strategy for enforcing Zero Trust in DOD365, presenting a significant opportunity.”
1,000-user licence renewal underpins operations
Supporting the production rollout, a US Department of Defense systems integrator has renewed 1,000 NC Protect production licences for ongoing mission operations.
The renewal is valued at $38,500 for a six-month term and keeps the current deployment active as work continues on expanding functionality and scaling. The agreement also provides a reference point for production use, with the licences tied to a live environment rather than a trial or pilot.
Custom DoD enhancements due mid-January 2026
The next milestone centres on delivery of customised NC Protect software enhancements procured for DoD requirements, with completion targeted for mid-January 2026.
The work is focused on interoperability and enabling a larger-scaled deployment within DoD365, reflecting the technical and compliance demands of operating within approved defence environments. Delivery is being progressed alongside Copper River Technologies, GDIT and DoD engineering teams, combining contracted software development with integration support.
Attention is also returning to a potential enterprise licensing pathway across the DoD following delays tied to the US Government shutdown and associated administrative constraints.
The commercial opportunity being discussed contemplates licensing in larger blocks, starting from 8,000 users and potentially increasing to several hundred thousand users over time, depending on procurement progress and broader adoption within the DoD365 environment. Any expansion would be shaped by defence procurement timelines and internal approvals.
Spirion integration progress and $8M standby funding option
On the corporate front, archTIS is nearing the end of a 100-day integration plan for Spirion, a process aimed at accelerating US market penetration and aligning product, sales and operating structures.
Initial cost synergies of $4.5 million per year have been delivered via a global restructuring, with integration work now around 90 days into the plan.
Separately, archTIS has executed a term sheet for a standby drawdown facility of up to $8 million with Regal Tactical Credit Fund. The facility runs for eight months and has been framed as a non-dilutive funding option, with establishment, drafting and exit fees totalling $1 million.