New Agreement with Microsoft saves UK Public Sector money on software licensing
New Public Sector Agreement with Microsoft: It can save you money!
The Agreement
You will have been aware that, at the end of May this year, Buying Solutions, negotiating on behalf of the UK public sector, reached a new Public Sector Agreement (PSA09) with Microsoft. The agreement created a more flexible approach to the licensing of Microsoft products, providing the means for public sector bodies to obtain greater value for money.
Although the agreement has delivered better prices, it is the flexibility inherent in the agreement that will provide the greatest scope for savings. This will be achieved through applying two key principles:
* Firstly, public sector bodies can now break away from the standard Microsoft packages, selecting and paying only for those software elements really required
* Secondly, the agreement introduces transferability of licences right across the public sector to avoid waste, ensuring that full return on investment is achieved when, for any reason, licences become surplus to requirements
The outcome of the former is that public sector bodies will now be able to construct an optimum software profile based on anticipated usage, by using software building blocks designed with typical public sector needs in mind. These building blocks, or public sector packages as they are known, provide a revolutionary alternative to continuing with the traditional Microsoft packages. In the case of the latter, natural changes in the disposition of staff across the public service can be addressed, at least in part, by the harvesting of unused licences and their re-allocation. It is estimated that these two features could ultimately save the taxpayer £75 million over the next five years.
The new agreement was warmly welcomed on behalf of the Government by the then Exchequer Secretary to the Treasury Angela Eagle who said, “This new agreement…clearly demonstrates the huge benefits that can be achieved through collaborative procurement.”
The Original Vision
From the outset, Buying Solutions was looking to provide a flexible and agile set of Microsoft solutions that maximises value for money for the public sector. The new agreement strengthens the public sector’s negotiating position in the future by having one single agreement that harnesses combined buying power. The deal has been favourably benchmarked against previous agreements, the commercial sector and existing public sector agreements.
Microsoft Commitment
It has to be said, however, that the deal also reflects Microsoft’s determination to be a key partner in the delivery of public sector transformation and change. Nicola Hodson, UK public sector director at Microsoft, said, “The UK public sector is a key customer for us and we have responded to its dual requirements for flexibility and best pricing. The new agreement is the result of an in-depth collaborative procurement engagement between Microsoft and the public sector, and will deliver cost savings while providing the technology that can help to improve the efficiency and effectiveness of 21st century public service delivery.”
The Microsoft Technology Roadmap
The new agreement comes at an interesting time for Microsoft in relation to their product lifecycle. The issues with the current operating system, Vista, have been well reported in the press. It will come as no surprise that Microsoft has been working to major improvements in its software packages. Early indications are that Windows 7, due for release in October, is a major step forward and has a number of features that should prove very attractive to corporate customers. Similarly, the release of Office 2010 next Spring will signal a steady flow of new or upgraded products designed to further improve personal and team productivity. Should customers wish to avail themselves of this new software, the new agreement provides a number of routes for doing so.
How to get the best from the agreement
The agreement is very flexible but getting the best from it is not trivial. Customers need to understand their ‘as is’ situation including what software is rolled out and how it is used. They also have to have a clear idea of where they want to be in the future. This raises a number of complex questions and each customer will have unique features that will influence their choices. Each customer will have their own view of the value of Software Assurance, the Microsoft vehicle for spreading the cost of software upgrades, and the agreement has been carefully designed to facilitate a number of different approaches.
Where to get Help
Help is available from a number of Sources. Firstly, Buying Solutions are more than happy to help. Either contact the Buying Solutions’ customer service desk on 0345 410 2222 or email microsoftagreement@buyingsolutions.gsi.gov.uk
In addition, the various Microsoft Large Account Resellers are able to provide significant help. They have specialists in the licensing of Microsoft products and can also help you define your requirement.
Regional Clinics
You can also attend one of our clinics on the new agreement which are held at various venues across the country.
6 October Newcastle Jurys Inn
4 November Manchester Principal Hayley Palace
11 November London HM Treasury, 1 Horse Guards
9 December London HM Treasury, 1 Horse Guards
Each clinic will be from 1100 – 1400 with lunch provided. There will be a full presentation on PSA09 followed by a Question & Answer session. Thereafter, there will also be an opportunity for one-to-one meetings at which specific customer issues can be addressed. Experts will be on hand to advise on the finer points of PSA09 and customers should find the event very valuable.
Requests for places should be sent to microsoftclinic@buyingsolutions.gsi.gov.uk
More Information
For more information about the new Microsoft deal, visit www.buyingsolutions.gov.uk
Topics: Britain, Buying Solutions, Democratic Republic of Congo, Economy, England, Governance, Microsoft, Public Sector, software licensing, technology, UK, United Kingdom
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