DTA Enhances Microsoft Sourcing Agreement with Extra $25M Investment
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Quick Overview
- Australian federal government boosts Microsoft collaboration by $25 million for integrated support services.
- Overall agreement value now surpasses $1.2 billion.
- Original agreement began at $96 million, now increased by over thirteen times.
- Copilot services are excluded from this updated arrangement.
- 180,000 Microsoft licences acquired by government agencies last year.
Federal Government Enhances Microsoft Collaboration
The Digital Transformation Agency (DTA) has recently finalized a new one-year arrangement that strengthens the federal government’s bulk sourcing agreement with Microsoft by an additional $25 million. This increase specifically focuses on “integrated support” services, guaranteeing improved assistance for various federal agencies utilizing Microsoft products and services.
Current Scope and Exclusions
The agreement, which encompasses multiple federal agencies, currently does not encompass Microsoft’s Copilot services. Despite this exclusion, the arrangement builds on a $257 million amendment made earlier this month, elevating the total worth of the standing offer beyond $1.2 billion.
Historical Context and Growth
Initially valued at $96 million, the agreement has experienced significant growth, now holding a value more than thirteen times its original figure. Renewed for an additional 12 months in January, the total value of the agreement reached $954 million at the point of its third renewal, reflecting a notable 25 percent increase in just six months.
Impact on Licensing
As reported last year, 180,000 licences for Microsoft Office and other associated products and services were provided to government agencies through the government’s official Microsoft reseller, Data#3. This illustrates the considerable dependence on Microsoft’s suite of products throughout federal sectors.
Summary
The Australian government’s move to elevate the Microsoft bulk sourcing agreement exemplifies a strong commitment to utilizing Microsoft’s technology to bolster federal operations. Although Copilot is not part of this deal, the emphasis remains on integrated support to guarantee seamless service delivery across agencies.