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Aggregated licensing spend will trigger bigger discounts for public sector...
By Andy McCue
Published: 27 April 2006 16:00 BST
The government has renegotiated its bulk licensing deal with Oracle in a move aimed at saving the public sector £45m.
The original framework licensing agreement was signed three years ago by the public sector procurement body the Office of Government Commerce (OGC) and allows the government to aggregate its licensing spend to negotiate better prices.
The new three-year memorandum of understanding with Oracle will allow the government to pool its software licences in order to trigger better volume-pricing-based discounts.
The changes came into effect on 1 April 2006 and also include consultancy services and a reduction in the minimum number of users required for an enterprise licensing agreement.
Hugh Barrett, CEO of the OGC's trading arm OGCbuying.solutions, said in a statement: "Our agreement with Oracle is a good example of the use of the wider public sector's purchasing power to deliver benefit to the taxpayer."
The OGC has similar bulk licensing deals with other major IT suppliers, including Microsoft, which yield combined annual savings of more than £100m for the public sector.
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