2022-12-15 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                            15 DECEMBER 2022


In addition, the report Services and Organisation Committee Meeting dated 6 November 2022 did
not clearly articulate that this is not a fixed fee contract over a three year term but rather schedule of
rates. Costs under the contract will increase with additional users, licenses as well as for specialised
Microsoft software products (such as Microsoft Project). A typical base license cost is $866 (ex GST)
per user per year inclusive of Microsoft Windows, Office 365 cloud productivity suite including online
file storage and file sharing, Microsoft Teams telephony, and bundled information protection,
personal computer anti-virus, mobile device management and security capabilities including multi-
factor authentication. The bundled security capabilities also include a critical conditional access
capability that has protected Council from malicious logons from overseas.
Any specialised software requirements will increase the cost per user per annum.
If additional users or devices are added during the term of the agreement, individual licences are
added in a “true up” at the end of each calendar year. The additional licences are procured being
paid pro-rata back to the date they were added. If users or devices are removed, licences are
available for redeployment.
As a result, whilst the total cost extrapolated over the three year term of the contract equates to
$1,618,161.87 (ex GST) in practice the annual cost may increase with license demand in future
years and this total cost will in turn be higher.
Previous Council Consideration
Refer to original report tabled at Services and Organisational Committee meeting of 6 December
2022 and referred to General Committee meeting on 14 December 2022.
Finance
The Microsoft Enterprise Agreement annual cost based on current licensing demand is $539,387.29,
which remains within current budget allocation for the 2022/23 year of $539,884.00. Budgets for
future financial years will be reassessed as part of annual budget deliberations and recalculated
based on licensing demand.
The adopted budget includes a budget of $539,884 for Microsoft licensing.
Risks & Opportunities
Council’s Microsoft licensing includes subscription licensing for email and telephony that does not
permit continued use after the expiry of the licensing agreement. To continue using Microsoft
licensing without loss of service or breaching copyright, Council must renew the Microsoft licensing
before the expiry of the existing agreement on the 1 January 2023.
Consultation
External Consultation - Community & Stakeholder
•       Local Government Account Executive, Microsoft Australia.
•       Software Licensing Account Manager, Data#3 Pty Ltd.
•       Director, Codify Pty Ltd.

Internal Consultation
Nil.

Departments/Sections Consulted:

       Chief Executive Officer    Community Services                       x   Corporate Services
       Executive Support          Director                                 X   Director
                                  Community Development                        Financial Services
                                  Community Facilities                         Fleet
                                  Libraries & Galleries                        ICT
                                  Local Laws                               X   Procurement
                                  Waste & Environmental Health                 Property
                                                                               Revenue Services


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