News
UK public sector saves an extra £1m per year on cost of software licences
Released on 11/09/2006
The British public sector is now saving £1 million a year on the cost of Microsoft licences - thanks to a "memorandum of undertanding" (MoU), set up by OGCbuying.solutions, the trading arm of the Office of Government Commerce.
Under the MoU, the additional discount is delivered, once the number of Microsoft licences, issued across the public sector, exceeds 1.5 million. The new higher discount level will cut licence fees for Microsoft products, used by the public sector, by more than £1 million per year.
The MoU between Microsoft and OGC provides discounts on desktop software under enterprise and select agreement licences, including discounts on support packages. OGCbuying.solutions has a number of MoUs - including the one with Microsoft - which has helped to contribute to the £412 million savings, delivered by OGC last year.
Hugh Barrett, Chief Executive of OGCbuying.solutions, said: "One and a half million public sector users have joined together under OGC's leadership to make the most of their combined purchasing power. The new discount available on enterprise agreements can now be enjoyed by all public sector bodies and the savings can be reinvested into front line public services."
Terry Smith, Senior Director Public Services of Microsoft, said: "We are delighted that the public sector continues to see our products and solutions as integral to their operations. Microsoft is committed to partnering with the UK public sector to transform the way services are delivered across the country. It is great that so many users and organisations are able to realise the value of our products and we hope that we can continue to support and build on this in the future."
OGCbuying.solutions also manages software licence MoUs with Sun Microsystems, Oracle and IBM, on behalf of OGC. These agreements operate within our existing framework agreements and specify the pricing and terms, under which the software owner will conduct business with the Government and the wider public sector.
- Using these agreements provides individual organisations with many benefits, including:
- Economies of scale resulting in significant discounts;
- General lowest price guarantee across Government;
- Maintaining relationships with existing resellers; and
- No need for specific negotiations.
OGC's contracts and framework agreements offer substantial savings, through significant buying power, economies of scale and strategic partnerships, which are counted towards the Efficiency Review target. Rigorous tendering and evaluation processes ensure that products and services are checked for quality, price competitiveness, fitness for purpose and compliance with statutory requirements. These products and services are available through OGCbuying.solutions Catalist framework agreements and Managed Services - which are predominantly more sophisticated services, requiring expertise and additional support from OGCbuying.solutions.
For press enquiries, please email holly.riggs@ogcbs.gsi.gov.uk or phone 01603 704742 (mobile phone 07900 162 195).
Contact details:
OGC Service Desk
Tel: 0845 000 4999
E-mail: ServiceDesk@ogc.gsi.gov.uk
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Page last updated: 2006-09-11
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