At AU$8 million, the size of the contract is one-tenth of the Microsoft deal, though the cost savings in dollar terms could be even greater.
"As a result of the agreement, the Victorian Government will save between AU$10-$20 million during the life of the contract, which is a fantastic result for Victorian taxpayers," said the Minister for Information and Communication Technology, Marsha Thomson.
The Microsoft contract was said to save the Government AU$19 million on retail prices, though it is unlikely that a major customer would pay full price.
The Lotus software being licensed includes workplace collaboration, document management, workflow, e-learning and knowledge management facilities.
"This functionality, that extends well beyond e-mail and diary, significantly enhances strategic business application development opportunities within Victorian Government," Thomson said.
"The deal is also a boon for the Victorian industry as IBM's Lotus Software business partners will benefit through more business [and] partnering opportunities in assisting departments in application development and systems integration," she added.
