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Qld govt signs $60m Microsoft deal

By Ben Grubb, ZDNet.com.au on January 26th, 2010

Topics

microsoft, qld, queensland, government

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The Queensland Government expects to save $10 million over three years through a new licensing agreement it has sealed with Microsoft.

The agreement, which could be worth around $60 million over the three years, will see the state having access to "competitively-priced" software and services as part of a whole-of-government sourcing arrangement which will cover 150,000 government employees. The government currently spends around $20 million annually.

The agreement would support the Queensland government's move to establish a standardised desktop fleet, email and server platform, according to Microsoft. This vision had already led to some departments planning their moves to Windows 7, a spokesperson for Minister for Public Works and Information and Communications Technology, Robert Schwarten said.

The minister said the whole-of-government arrangement had been created to give all departments access to a range of "essential server technologies for deployment across the government".

"In addition, the arrangement gives all state and local government entities the opportunity to purchase other Microsoft solutions with various options, depending upon the needs of the agency involved," he said.

Since June, the government has been setting up a large account reseller panel arrangement to acquire the Microsoft licenses. Detailed negotiations commenced between both parties in October.

ZDNet.com.au understands that Dell is one of the vendors which will have a place on the panel.

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Talkback

Actually...

The panel basically has every LAR on it, so it's no great thing. And in reality, this panel arangement allows agencies to buy what they have wanted to for years - EA agreements. But they were prevented from doing so under the old regime that forced them to buy Open licensing.

AnonymousAnonymous January 27th, 2010
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Nothing to see here

There is nothing 'visionary' about this agreement. It covers client access licenses only, leaving individual agencies the responsibility of forming their own agreements around desktop and server products. Agencies will have to come up with their own funds across the 13 departments to upgrade from their XP/2003 platforms. No leverage from purchasing power happening here.

AnonymousAnonymous January 27th, 2010
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What about hidden costs

This only talks about licencing costs. What about the exhorbitant costs to departments as they "do-away" with existing systems and migrate to a Microsoft centric platform. I can guarantee it will cost more to migrate than the supposed $10 million in savings for licences!

AnonymousAnonymous January 27th, 2010
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Doublespeak

"The Queensland Government expects to save $10 million over three years through a new licensing agreement it has sealed with Microsoft."

Doublespeak. They actually expect to *spend $60,000,000*.

AnonymousAnonymous January 27th, 2010
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So, can we real competition here?

The only vendor they talked to, and the only technology they countenanced here is Microsoft.
Where are the alternatives?
Where are the Apple and Linux platforms?
Let's see some *real* tender competition in play for $60 million in public monies.

Only real competition can deliver price and product benefits over time, and here we have yet another government distorting the open market.

Mr ToadMr Toad January 27th, 2010
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cost of change

Like or not MS is here to stay in Queensland Government. The cost of change is just to great, are you going to retrain 200,000 public servants, chuck out all the current WinTel based devices to run Apple, for god sake.

Then there is the embedded macro code used by Departments in Word, Excel, Access and so on. Every one will need to be re-written for a start once they are identified. Then there is project and Visio, both easily replaced.

The reality is there is no alternative because the true cost of change is greater than $60M to get to the current versions available.

Present a compelling and total cost of ownership proposal that shows how it will save money coupled with migration plan that occurs in less than a election cycle and we might pay attention. The Linux Desktop is cheaper bandwagon has long since passed into the sunset. Linux as Server OS is different proposition but comes with different baggage.

It is easy to sit on the sideline and chuck rocks, it is very different when you are tasked with dealing with reality and constraints associated with it.

AnonymousAnonymous January 27th, 2010
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Strategic Analysis and Planning lacking here

With proper strategic analysis and planning, any government could move off Microsoft. That they don't undertake such an exercise, as a backup plan if nothing else, is a failure of risk management.

What happens if Microsoft triple their prices next time around? Yes, that's right, the Queensland government is screwed.

Mr ToadMr Toad January 29th, 2010
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More double-speak

So the fact that MS has been able to leverage their position and obtain proprietary lock-in makes any cost OK?

What abouit departments like Transport who paid millions to convert from Lotus SmartSuite (which they were getting for free as part of their Lotus Notes licence) to Microsoft Offce?

Numerous studies were done into the functionality of Office vs SmartSuite, and every time it came up a wash - the suites had essentially the same functionality and ease of use. So how did they justify the change? You guess it - "MS Office is what everyone else uses".

So conversion *to* Office seems pretty easy, doesn't it tell you something if conversion *from* Office is prohibitive?

AnonymousAnonymous February 5th, 2010
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Would prefer

that the Queensland Government were truly innovative and also considered other vendors. It feels like a ring has been put through the nose of government and we're being led like a prize bull down one path. Not smart thinking.

AmethystAmethyst January 27th, 2010
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Please take off your coloured glasses...

...and remember the priority of the QLD government is to run things smoothly, not to innovate on things without merit, financially and politically.

If an alternative solution can fasttrack the tasks of their 150,000 staff, then it's worthwhile (i.e. they can hire less). Do you see any other departments using alternatives?

Good luck preaching to 150,000 Windows users about totally changing their daily working habits! You'll get more support calls than Dodo Internet on a rainy day.

DarrenDarren January 27th, 2010
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Please get back to reality

Where is you proof that MS Office is the best "financial and political" solution? Why do politics even enter into the decision?

You are selling Queensland public servants a little short. The 65,000 employees of CentreLink use Lotus SmartSuite and so did QT until recently, so yes, some departments *do* use alternatives.

Finally, there is also no need to convert all Office users to some alternative overnight. Departments should be free to chose whichever suite best meets their needs (i.e. best fits their business case for cost, functionality, etc.).

Robert GreenRobert Green February 5th, 2010
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Other Alternatives

Linux is in use on some servers etc. but as Darren said I don't think it would be efficient on desktops.
Apple platforms? You've got to be joking!
Having had bitter experience with US hyped Apple products before I personally wouldn't touch anything Apple with a barge pole.

AnonymousAnonymous January 27th, 2010
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Microsoft all the way

As a government employee, I see this as a positive step. Now i'm no computer guru but I do like to have all the stuff I do at work be compatible and familiar with what I do at home. I bought a Windows computer because it's a friendly user experience. If you put that Linxux or Apple computers in there I would probably quit.

AnonymousAnonymous January 27th, 2010
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You'd WHAT? Quit?

You are either a Microsoft employee or you are crazy. Let me see what you said.

You bought a Microsoft PC cos it was easy to use (????) and you would quit if someone GAVE you a MAC to use at work (???).

Think about this. You know nothing about computers (you admitted that) BUT as a public servant you think your home PC purchase should direct the governments whole desktop strategy. If it doesn't you will resign.

Well ....Resign now please and lower my taxes.

AnonymousAnonymous January 29th, 2010
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See ya Mac-ophiles

See if I've got this right - all government employees who have a non-Windows PC at home should quit immediately.

I guess you'd be even more upset if you drive a Holden and your work asked you to drive a Ford or *gasp* Toyota.

Robert GreenRobert Green February 5th, 2010
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No you haven't got it right - Derrrrrrr

So you can get what I meant here it is again slowly....

IF YOU BELIEVE THAT THE GOVT SHOULD BASE IT PURCHASING DECISIONS ON YOUR HOME CHOICE AND...

IF YOU WOULD RESIGN IF THE GOVERNMENT PICKED SOMETHING YOU DIDN'T HAVE AT HOME,

THEN
(r u following the logic here)

YOU SHOULD RESIGN REGARDLESS COS YOU ARE JUST A SILLY PERSON.

It's nothing to do with a MAC. It's do to with decision making and selection criteria.

AnonymousAnonymous February 25th, 2010
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