By Steve Ranger, 28 July 2005 11:32
NEWS Microsoft has signed two giant licensing deals with UK government departments, covering more than 230,000 desktops.
The software giant has inked contracts with HM Revenue & Customs (HMRC) and the largest government department, the Department for Work and Pensions (DWP), which is planning a move to Windows XP.
The company said the deals will give both departments access to the latest Microsoft software and will deliver "significant savings and efficiencies through aggregated procurement, more standardised working and reductions in support costs".
The three-year enterprise agreement with HMRC covers 104,000 desktops across the UK. It gives the department access to the full Microsoft product suite, including Windows, Office Professional, Sharepoint, Systems Management Server and Exchange. The DWP deal covers 130,000 desktops.
HMRC commercial director Mark Forth said: "This is a positive development for our organisation representing substantial cost savings over the term of the agreement and allowing us to adopt a flexible approach to the delivery of our IT services."
He added that the co-ordinated approach to negotiating the deal has resulted in additional savings for government.
DWP service delivery director Kenny Robertson said: "Our recent adoption of an enterprise agreement complements our strategic direction on the desktop and [Microsoft] have been in the trenches with us as we prepare the technical aspects to migrate our estate to XP."

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1. Alistair Thomas
Two more huge government departments doing 'mega' deals with Microsoft. Microsoft must be laughing all the way to the bank at UK PLC's inability to negotiate all it's software needs for all its departments in one go.
The DWP guy talks about Microsoft being in the trenches with them. No doubt these are highly paid consultants bolstering MS pockets too. How many of the DWP problems applying MS software are unique to the DWP?
Is there any chance that we have invested in some knowledge transfer so that for the next big department that does a 'mega deal' we can pay wages instead of consultancy fees to help with the integration?
Every other week it seems we hear of a new example of a lack of joined up thinking in government and a new bunch of people feeling pleased with themselves at the 'savings' they have negotiated. The fact is that they are going to waste less now, but there is no accountability for the waste that has gone before, or for the waste that will still go on until they all get together and talk to each other.