The Australian Department of Defence is reported to be planning to deploy 500 thin client computers by the end of 2011. Defence CTO Matt Yannopoulous mentioned thin clients in his talk at the ACS Canberra branch conference recently. Thin clients also feature in the "Defence Next Generation Desktop Project" (issued 22 April 2010).
It should be noted that thin client computing is not new to defence. Melbourne based electronics manufacturer Labtam, produced advanced thin client workstations (then called "X terminals") in the 1990s. These were sold to the Department of Defence and the ANU. The business was later sold to Tektronix Inc. IBM had a contract to supply Defence with hardware, but the Australian made units were superior. I was working in HQ ADF at the time and recall I recall writing a speech for the then Minister for Defence Support, about these terminals being made in Victoria (which the Minister's office liked).