Contract Number CN25210 - Microsoft Enterprise Agreement Software License Renewal

Frank Wilkie0:00

My respects to the elders past, present and emerging and reiterate their invitation for us to join them as joint custodians in respecting and caring for this beautiful place that we all love, respecting and caring for each other. I note we have in attendance here this morning in the chamber we have Councillor Tom Wegener, Councillor Amelia Lorentson, Councillor Jessica Phillips and myself and online we have Councillor Nicola Wilson, Councillor Karen Finzel and Councillor Brian Stockwell. Today's Special Meeting is to consider contract number CN25210 which is a Microsoft Enterprise Agreement Software License Renewal. We have Acting ICT Manager Cameron Douglas here for this report and we also have the Acting Manager of Corporate Services Margaret Gatt here as well. So Cameron would you give us a poise of the report please.

This yeah for our enterprise agreement there are they're locked in for three years that we get every 12 months we can look at so you know through the work that we did with their managers we have made significant savings in altering our license model between the two between the enterprise agreement and the cloud service provider and so this is for three years staff do have the benefit of using software at home as part of the organisation the lot Microsoft licensing agreement so staff members are able to download a copy of Microsoft for use at home over the three years you

We're up for our three year enterprise agreement renewal with Microsoft. In a sense is possibly our most important software partner. We probably understand Microsoft to be Windows 11, our office apps and email. But critically Microsoft provides to all our systems. So it's through the identity management of our user accounts and multi-factor authentication that not only grants access to our Microsoft systems but all our other systems. So it's a centralised access management point for ICT. And is what secures all our systems, whether that be the TechnologyOne ERP, our Resolve system, our SharePoint, etc. So for us, Microsoft is very critical for us to be able to manage our cyber security and our access points. Um, uh, we're we have, um, in that position where our renewal was on the 31st of December and recently Microsoft has changed their approach to licensing for local governments and enterprise and we received that at a reasonably late notice. Um, it's coincidental for us that our renewal is this time whereas everyone else's renewal falls all over the place so for us it was just a very short notice. Um, what Microsoft have introduced is, um, uh, the cloud service provider option for councils. So, uh, in the past we would purchase an enterprise agreement with Microsoft. Uh, that was a three year agreement that would give us at least price certainty for three years. Uh, but it's fairly inflexible. So what that means is that if I sign up for 500 users at the start of the year, um, I'm stuck with those 500 users for the entire year. Um, there's no opportunity to scale up or scale down. So what they've allowed is they've brought cloud service provider model, which can work, um, side by with the enterprise agreement that allows us to transition some of our licenses onto a more scalable, flexible model. So that means we could can put casuals on monthly arrangements, um, that if a casual then, um, ceases service with Council, we can, we're not then paying for that license for the remainder of that time. If we need additional planner licenses, project licenses, Visio licenses, we can buy them on monthly subscriptions, not annual subscriptions. Um, so there's, it gives us a level of flexibility. Um, for Microsoft, this would be a, some form of cut in revenue giving, uh, organisations like ours flexibility. So what that also coincided with was a reduction in discounts for local government. So all discounts were off table and there was a standard enterprise agreement rate. Um, and it allowed, um, but they, their reasoning was it gave us flexibility through a CSP model. Um, that put us in a bit of a, difficult position because the increases could have been 15 to 20% on our last agreement. And what we've also noticed, um, this year is that our software renewal prices are well above what we expect them to be. Um, everything that's come in this much higher, you know, in the percent, around eight, 10% higher than what it was last year. Now, um, a lot of our suppliers are american companies of software and it, looks like that, you know, they're the opportunity to raise their rates where they can, uh, in some of these, um, Data #3, um, has been a really good support partner of Council for a long time. Uh, and they do understand, um, the Microsoft, um, uh, licensing. Model. And they do have good connections through to Microsoft. Um, we arranged a meeting, um, through Data #3 with Microsoft to air our concerns around the increases in the short notice period, uh, for us to adjust. Um, and through the work of Data #3, um, we were able to access state government pricing for this agreement. Um, what that means though, is from Microsoft's perspective, they want this all signed off pretty quickly. Um, and for us, it's critical because our, license expires on the 31st of December. Um, and we need a contract in place to ensure continuity of service. Um, and so that's the short turnaround time in this, Special Meeting, um, was to meet these time frames that have been placed on us by Microsoft and tried to get the best deal.