Space Industry Weekly: Major Shifts in Defense, VMware’s Partner Issues, Commercial Consolidation, and Policy Battles


Hey Team, here is your week­ly space indus­try roundup. This week brought some sig­nif­i­cant devel­op­ments that’ll shape both our nation­al secu­ri­ty pos­ture, tech­nol­o­gy, and the com­mer­cial space land­scape. Let me break down what caught my attention.

Golden Dome Gets Its Leader

The big news last Thurs­day was the Sen­ate’s con­fir­ma­tion of Space Force Gen. Michael Guetlein to lead Pres­i­dent Trump’s Gold­en Dome mis­sile defense ini­tia­tive. This con­fir­ma­tion, com­ing two months after his nom­i­na­tion, marks a sig­nif­i­cant mile­stone for what is arguably the admin­is­tra­tion’s most ambi­tious space program.

For those track­ing the lead­er­ship changes, Lt. Gen. Shawn Brat­ton was nom­i­nat­ed ear­li­er this week to fill Guetlein’s for­mer role as Vice Chief of Space Oper­a­tions. The Space Force is mov­ing quick­ly to main­tain con­ti­nu­ity while pur­su­ing this new defen­sive architecture.

What’s par­tic­u­lar­ly inter­est­ing is the tim­ing — get­ting Guetlein con­firmed now allows the pro­gram to tran­si­tion from the con­cept phase to the exe­cu­tion phase. I’m watch­ing close­ly to see how they’ll struc­ture the pro­cure­ment strat­e­gy for what promis­es to be a mas­sive undertaking.

SES-Intelsat Merger Creates Satellite Giant

In the com­mer­cial sec­tor, SES com­plet­ed its acqui­si­tion of Intel­sat on Thurs­day, cre­at­ing what is essen­tial­ly a geo­sta­tion­ary behe­moth with approx­i­mate­ly 90 GEO satel­lites — that’s more than Eutel­sat, Tele­sat, and Viasat com­bined. But here’s what’s intrigu­ing: CEO Adel Al-Saleh is already talk­ing about scal­ing up to “hun­dreds” of MEO satellites.

The com­bined enti­ty faces sev­er­al sig­nif­i­cant chal­lenges, how­ev­er. They’re car­ry­ing over $4 bil­lion in debt against pro­ject­ed rev­enues of $4.3 bil­lion this year. Their plan? Cut $430 mil­lion in annu­al costs through oper­a­tional effi­cien­cies and lever­age their increased pur­chas­ing power.

From a strate­gic per­spec­tive, this con­sol­i­da­tion makes sense giv­en the pres­sure from SpaceX’s Star­link. The fact that reg­u­la­tors approved this merg­er rel­a­tive­ly eas­i­ly, com­pared to the Inmarsat-Viasat deal, shows just how much the com­pet­i­tive land­scape has shift­ed. One ana­lyst, Tim Far­rar, not­ed this indi­cates “how much reg­u­la­tors have tak­en onboard the com­pe­ti­tion from Starlink.”

VMware Partners Face Another Shakeup

Broad­com con­tin­ues its aggres­sive restruc­tur­ing of VMware’s part­ner ecosys­tem. They announced this week that the cur­rent VMware Cloud Ser­vice Provider pro­gram will end on Octo­ber 31, replaced by a new, invite-only pro­gram start­ing Novem­ber 1.

The impact? Poten­tial­ly dev­as­tat­ing for small­er providers. Part­ners not invit­ed to the new pro­gram can only ser­vice exist­ing con­tracts with­in their cur­rent terms, with no renewals or new busi­ness oppor­tu­ni­ties. The white-label pro­gram that allowed small­er oper­a­tors to work through larg­er part­ners? Also end­ing Octo­ber 31.

This is the sec­ond major over­haul of the part­ner pro­gram in 18 months. As some­one who has worked with numer­ous VMware part­ners over the years, I can tell you that this lev­el of dis­rup­tion is unprece­dent­ed. One Red­dit user claimed that their orga­ni­za­tion spends approx­i­mate­ly $400,000 annu­al­ly through a white-label part­ner and now has just six months to design and build an entire­ly new vir­tu­al­iza­tion plat­form. Mean­while, the U.S. com­bat­ant com­mands are being hit with bills that are mak­ing the J6 and pro­cure­ment offi­cers’ eyes water.

NASA Faces Budget Battle with Congress

Ten­sions are esca­lat­ing between NASA and House Democ­rats. Reps. Zoe Lof­gren and Valerie Foushee sent a let­ter to Act­ing Admin­is­tra­tor Sean Duffy, accus­ing the agency of ille­gal­ly impound­ing funds and pre­ma­ture­ly imple­ment­ing the fis­cal 2026 bud­get proposal.

The specifics are con­cern­ing: NASA can­celed a planned upgrade to the ISS’s Alpha Mag­net­ic Spec­trom­e­ter and is block­ing press releas­es about mis­sions slat­ed for can­cel­la­tion. This, while the White House pro­pos­es a 25% bud­get cut that both House and Sen­ate appro­pri­a­tors seem like­ly to reject.

Speak­ing of Duffy, he’s final­ly set­tling into his dual role as Trans­porta­tion Sec­re­tary and Act­ing Admin­is­tra­tor of NASA. He addressed the NASA work­force via video on Fri­day, although he admit­ted that Wednes­day was only his “first full day at NASA.” His com­ment that lead­ing NASA won’t impact his DOT work raised some eye­brows — we’ll see how that plays out.

Space Force Prioritizes Military Launch Access

With com­mer­cial launch demand surg­ing, the Space Force released new guide­lines Wednes­day for allo­cat­ing launch infra­struc­ture and range resources. The mes­sage is clear: nation­al secu­ri­ty mis­sions get pri­or­i­ty access to finite gov­ern­ment resources.

This isn’t sur­pris­ing, giv­en the strain on Cape Canaver­al and Van­den­berg facil­i­ties, but it does sig­nal poten­tial con­flicts ahead as com­mer­cial oper­a­tors con­tin­ue to ramp up their launch cadence. The Space Force reaf­firmed sup­port for com­mer­cial indus­try but drew a clear line on resource allocation.

Quick Hits from the Week

  • Blue Orig­in’s NG‑2 Mis­sion: The sec­ond New Glenn launch will car­ry NASA’s ESCAPADE Mars mis­sion. No date has been set yet, but the space­craft has­n’t shipped to the launch site, sug­gest­ing we’re still months away.
  • NASA’s TRACERS Mis­sion: Set to launch this month on SpaceX, this $115 mil­lion dual-satel­lite mis­sion will study the impacts of space weath­er on satel­lite oper­a­tions. With the May 2024 G5 storm caus­ing an esti­mat­ed $500 mil­lion in loss­es, under­stand­ing these phe­nom­e­na is becom­ing eco­nom­i­cal­ly critical.
  • House NDAA Progress: The House Armed Ser­vices Com­mit­tee advanced the FY26 NDAA with pro­vi­sions sup­port­ing Gold­en Dome and for­mal­iz­ing Pen­ta­gon pro­cure­ment of com­mer­cial satel­lite imagery. The 55–2 vote shows strong bipar­ti­san sup­port for space initiatives.
  • Fire­fly Goes Pub­lic: Fire­fly Aero­space has filed its S‑1 with the SEC, plan­ning to list on the Nas­daq under the tick­er sym­bol FLY. Anoth­er sign of the matur­ing com­mer­cial space market.

Looking Ahead

The con­sol­i­da­tion in both gov­ern­ment part­ner­ships (VMware) and satel­lite oper­a­tions (SES-Intel­sat) reflects a mar­ket in tran­si­tion. Small­er play­ers are being squeezed out while larg­er enti­ties posi­tion them­selves for the next phase of competition.

For those of us in the fed­er­al con­tract­ing space, the Gold­en Dome pro­gram presents a sig­nif­i­cant oppor­tu­ni­ty, but also pos­es sub­stan­tial risk due to the tech­ni­cal chal­lenges it entails. I’ll be watch­ing close­ly to see how the pro­cure­ment strat­e­gy develops.

The NASA bud­get bat­tle is far from over. With appro­pri­a­tors in both cham­bers reject­ing the pro­posed cuts, we’re like­ly head­ed for anoth­er con­tin­u­ing res­o­lu­tion sce­nario — nev­er ide­al for long-term programs.

That’s your week in space. As always, I’m track­ing these devel­op­ments close­ly for oppor­tu­ni­ties that align with our strate­gic objec­tives. The rapid pace of change cre­ates both chal­lenges and oppor­tu­ni­ties — stay­ing informed is critical.

Until next week, keep look­ing up!

July 21, 2025

Posted in Space.

Comments are closed.