DTA reveals cost of new govt-wide Microsoft cloud deal with Data#3 - Strategy - Cloud - Software


The federal authorities’s lately renewed Microsoft quantity sourcing association shall be value $97 million over the subsequent three years.

The brand new settlement, which represents the fourth iteration of the whole-of-government deal, was inked in July to accelerate cloud adoption throughout authorities.

Whereas the prevailing quantity sourcing association (VSA) had allowed businesses to obtain Workplace 365 and Azure, each the Minister for Authorities Providers Stuart Robert and Microsoft indicated the most recent model contained extra beneficial phrases and pricing.

Microsoft mentioned the brand new VSA would make “Microsoft 365 obtainable to all federal authorities businesses on a cheap foundation”.

It was additionally anticipated that the settlement would result in “lower than two p.c of the Commonwealth … stay[ing] on legacy on-premise desktop licenses”.

However the worth of the cope with the federal government’s unique provider of Microsoft licencing, Information#3, wasn’t revealed on the time of the announcement.

Now the Digital Transformation Company has revealed two contracts regarding the deal, with a mixed worth of $97.four million over the subsequent three years.

The bigger of the 2 pertains to the common cloud commitment (CCC) enrolment element of the VSA, which is value $97.2 million between August 2019 and June 2022.

In response to the terms of the arrangement, the CCC enrolment contains probably the most commonly-used Microsoft merchandise like Workplace and Home windows.

The opposite contract, valued at $1.2 million over the identical interval, covers “residual core desktop licences” possible for the remaining two p.c of businesses with on-premises desktop licences.

Whereas these contracts might develop in worth over the subsequent three years, the preliminary revealed worth is considerably decrease than in years passed by.

Information#3’s previous VSA contract with the federal government was initially value $70 million between February 2018 and June 2019, although it did improve to $90 million through the lifetime of the deal.

Nonetheless, even at $90 million for 16 months, this determine is properly beneath the worth of the VSA between July 2013 and June 2016, which was value $281 million.

Date vary Contract worth
18 June 2009 – 30 June 2010 $47.15 million
7 July 2010 – 30 June 2011 $50.11 million
1 July 2011 – 30 June 2012 $50.64 million
1 June 2012 – 30 June 2013 $50.62 million
1 July 2013 – 30 June 2014 $48.26 million
four June 2014 – 30 June 2015 $49.95 million
29 June 2015 – 30 June 2016 $50.00 million
17 June 2016 – 13 March 2018 $132.97 million
2 February 2018 – 30 June 2019 $90.85 million
2 August 2019 – 30 June 2022 $97.40 million (two contracts mixed)

Federal authorities VSA contract values, compiled by iTnews (Supply: AusTender)

Information#Three has managed the federal authorities’s VSA association for the reason that co-ordinated procurement was first launched in 2008.

The deal was handed back to the reseller in March 2018, as a part of the creation of the federal government’s software program companies and licencing panel.


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