The federal government’s Microsoft volume sourcing arrangement has additional than doubled in worth, with the full expense of the deal now probably to exceed $three hundred million over its 3-year lifespan.
The agreement with Knowledge#3 – the government’s distinctive Microsoft licence reseller – was renewed past year to support the adoption of the cloud across the Australian Community Company.
It contained additional favourable terms and pricing for agencies to consume Azure and Place of work 365 pursuing the launch of two Azure public cloud locations in Canberra a year earlier.
The volume sourcing arrangement comprises two contracts.
The first – and major – of these is the prevalent cloud motivation (CCC). According to the terms of the arrangement, the CCC covers the most frequently-used Microsoft products and solutions like Place of work and Windows.
The second contract covers the remaining two % of agencies with on-premises desktop licences.
The CCC was to begin with valued at $96.two million in between August 2019 and June 2022.
But an update to the contract earlier this thirty day period has now additional than doubled its worth, climbing $103.six million to $200.two million.
A spokesperson from the Electronic Transformation Company advised iTnews the CCC deal funding increase covers the 2021-22 money year – the arrangement’s next year of operation.
“The increase in worth is a cumulative worth for the CCC enrolment, so while the deal is for 3 a long time, the claimed spent is annualised,” the spokesperson said.
That implies the worth of the 3rd year of the CCC is but to be additional.
Based mostly on the contract’s existing trajectory, with fees of around $one hundred million a year, the full worth of the govt-extensive VSA is now probably to exceed $three hundred million over the arrangement’s 3 year-expression, not the $96.two million first claimed (which was only the worth for the first year).
If the full expense reaches $three hundred million, the fourth iteration of the VSA will be the most expensive considering the fact that the coordinated procurement of Microsoft licensing was released in 2008.
The past model, which coated the interval July 2013 to June 2016, was worthy of $281 million, according to iTnews examination of past VSA deal values.
The contract’s expression and inclusions stay unchanged. Microsoft products and solutions offered below the CCC enrolment involve Microsoft 365 E3
“The Microsoft volume sourcing arrangement incorporates the full of Commonwealth’s expenditure on the CCC enrolment,” the spokesperson additional.
“The DTA reports on behalf of all agencies participating in the CCC enrolment.
“As an present agency will increase its CCC membership or a new agency joins the CCC enrolment, the DTA reports on behalf of the agency.”