The NSW Department of Education and Communities (DEC) has appointed Insight Enterprises as its Microsoft Large Account Reseller (LAR) for the next four years, in an $89.3 million deal.
Insight Enterprises will provide Microsoft software and software licensing to schools, TAFEs and the Department’s corporate communities under the four-year agreement.
Expiring in December 2017, the contract covers a significant ICT provision to one of the largest agencies in Australia. DEC accounts for around 25 per cent of NSW’s total budget, and Intermedium has calculated that it has a total ICT budget of around $407 million for 2012-13.
The contract falls under the mandatory whole-of-NSW-Government panel for Microsoft Large Account Resellers, which lists Insight Enterprises, Data#3 and Dimension Data as suppliers. The panel is due to expire in August 2013, with one remaining 12-month extension option.
Data#3 has also won a number of contracts in NSW through the panel. It is the current Microsoft LAR for HealthShare under a $28.7 million deal expiring in May 2013, and for TransGrid under a $1.8 million contract expiring in June 2014.
Insight Enterprises and Data#3 are the leading Microsoft Large Account Resellers in the Australian public sector, with a presence across the relevant panels in various jurisdictions.
Insight Enterprises is the sole Microsoft LAR to the Victorian and Western Australian governments (excluding the WA Department of Education and Training), and is included on whole-of-government panels in Queensland and NSW.
Its arrangement with Victoria is worth approximately $47 million, and the WA whole-of-government panel has an estimated value of $130 million.
Data#3 is the exclusive reseller to the Federal Government and the WA Department of Education and Training, and is eligible to supply to South Australian, Queensland and NSW governments.
Data#3’s panel arrangement with the Department of Finance and Deregulation is due to expire in March 2015, and has facilitated a significant number of contracts with Federal agencies for the supplier, including a one-year $50.6 million deal with Finance, a $6.4 million deal with the Australian Customs and Border Protection Service and a $2.9 million provision to Austrade. The panel is worth an estimated $95 million per year.
Data#3 also has a $44 million agreement with the WA Department of Education and Training in place, with an initial expiry in April 2015.
Other Microsoft Large Account Resellers in the Australian public sector are Hewlett-Packard, Dell and Corporate Express.
While Microsoft LAR panels continue to administer major contracts across Federal and State agencies, alternative models for software procurement are beginning to emerge, such as software-as-a-service.
Microsoft Exchange and Outlook email solutions, while remaining popular, are also facing cheaper cloud-based alternatives such as Google Apps, which is being adopted by NSW’s DEC.
A broader trial of cloud computing is underway in NSW, with the Department of Finance and Services (DFS) trialling a number of as-a-service solutions, including Email, Desktop and Infrastructure services.
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