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Getting a foot in the door of the South Australian ICT market

by Paris Cowan •
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Adelaide may lie on the far side of the Simpson Desert for many of us, but that doesn’t mean that your organisation can’t achieve a foothold in the State Government’s ICT market with the help of a little foresight.

Intermedium estimates that SA spends upwards of $500 million per annum on ICT goods and services.

Intermedium’s Budget IT Online tool identified a total of $632 million worth of ICT initiatives in South Australia’s 2012-13 Budget, $213 million of which is earmarked for expenditure in this financial year. It estimates that the total operational expenditure on ICT across the State’s public sector will reach $383 million in 2012-13.

The most effective way to make inroads into this market is to gain membership of one of the State’s many whole-of-government panels for ICT procurement, which can be worth up to $100 million per annum.

One of the biggest of the whole-of-government panels is the Distributed Computing Support Services panel which will reach its final expiry on 30 June 2013, meaning that an approach to market to renew the agreement could well be imminent. The Government estimates that the panel will have been worth $225 million to suppliers over its six-year term, or $37.5 million per annum.

Those in the server equipment market should also keep a close eye on Intermedium’s Tender Alerts for a renewal of the State Government’s contract for midrange equipment, software and services, which will reach its final expiry on 24 September 2013.

At present these products are supplied exclusively by Oracle but SA could choose to use the renewal as an opportunity to add some new names to its supplier list. The current arrangement will have been worth a total of $22.8 million over its six year term or $3.8 million each year.

The SA Government’s Office of the Chief Information Officer (OCIO) within the Department of Premier and Cabinet is in charge of the States approach to coordinated ICT procurement.

The OCIO has dropped some heavy hints that it is looking to set up a brand new whole-of-government panel in the foreseeable future.

“Subject to priorities, the State may consider approaching the market to establish a panel of suppliers of Storage Equipment,” the OCIO said in its latest ICT procurement update.

It is currently evaluating expressions of interest (EOIs) for its most recent approach to market to establish a panel which will consolidate its existing range of telecommunications panels into a single Managed Network Services arrangement covering products worth in excess of $100 million per annum.

It intends to have the new panel up and running by the time the last of the existing telecommunications panels expire in March 2014.

Other developments in SA’s whole-of-government ICT sourcing arrangements:

The OCIO is currently planning for contract negotiations with Microsoft, as the most recent agreement for the Government’s supply of Microsoft licences expired at 30 June 2012.

South Australia’s contract with Microsoft Large Account Reseller Data #3 has just been extended out to 30 June 2015 and no more options to extend remain.

The whole-of-government panel for Mainframe Computing Services has also been extended. It will now reach its expiry on 22 May 2018, bringing its full term to 11.5 years.

As of 22 March 2012 Symantec and the SA Government have established a perpetual master licence agreement for the provision of Symantec’s data protection, backup and recovery system software. It joins 14 other software providers that have such an agreement in place with the Government, including:

  1. CAM
  2. Adobe
  3. Compuware
  4. Handysoft
  5. TRIM
  6. IBM
  7. Identity Systems
  8. Ingres
  9. McAfee
  10. Novell
  11. Oracle
  12. QAS
  13. Red Hat
  14. SAP

The OCIO says that “the State runs an ongoing program of identifying software that is commonly used across-government, and establishes arrangements, such as Master Licence Agreements, with authors of those software products”.

Other States have established such agreements for the licencing of software not yet covered by the SA Government, such as Citrix products (Victoria); VMWare products (Victoria and Queensland); Mincom products (NSW); and Skillsoft products (Queensland).

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