Data#3 have continued to reap the rewards of its appointment as the sole Large Account Reseller for the whole-of-government Microsoft Volume Sourcing Arrangement (VSA), signing a $50.6 million contract with the Department of Finance and Deregulation for the provision of software assurance for agencies participating in the VSA.
The contract, which is effective from 1 July 2011 through 30 June 2012, is an annual renewal of the software assurance agreement. In 2010-11, the contract was worth $50.1 million.
The renewal was published on Austender just a day after the Department of Defence published details of their VSA Core Desktop Licence enrolment for the 18 months to June 2013, at a value of $21 million.
These contracts provide valuable insight into what the Microsoft VSA is worth each year, and what values individual agencies contract through it.
Since the agreement commenced in February 2009, Data#3 has entered into $208 million worth of contracts with Federal Government agencies for the provision of Microsoft software. Another $46 million worth of Microsoft software licences and associated services have been procured through the Department on Finance and Deregulation in the same period.
The Microsoft VSA is compulsory for use by all FMA Act agencies when they choose to procure Microsoft products.
Now two-and-a-half years old, the Microsoft VSA has resulted in a reduction in Microsoft procurement costs of 25 percent, according to First Assistant Secretary at the Australian Government Information Management Office (AGIMO) John Sheridan. Sheridan spoke on the topic at the 2011 CeBIT Conference.
Former Finance Minister Lindsay Tanner said in February 2009 that the intention of the agreement was to reduce agency costs in this area by at least $15 million a year for four years.
“The Microsoft VSA provides agencies with access to substantial discounts off the price for Microsoft products and reduces the need for protracted negotiations between individual agencies and Microsoft. The discounted prices, combined with process efficiencies in the VSA, will provide a considerable cost reduction for agencies,” he said.
The head agreement covers two areas of procurement: Core Desktop Licenses (CDL) and non CDL products. CDL products include Office Professional Plus, Windows Operating System Upgrades and Core user client-user access licences (CAL). The remainder of Microsoft products that are not part of the CDL form the latter category.