New Zealand-Microsoft agreement to reduce software licensing costs by $119 million

New Zealand's Department of Internal Affairs has signed a three-year agreement with Microsoft for the use of a range of products to government agencies on desktop and office productivity software like Windows and Office, and enterprise software like Windows Server, Exchange and SQL Server Database.

Internal Affairs Minister Chris Tremain said in a news release at the government website that the move is expected to reduce future licensing costs by up to $119 million.

“This agreement offers a significant improvement on previous all-of government Microsoft contracts. For example, it offers new and innovative licensing models based on the number of users, rather than the number of devices being licensed,” said Minister Tremain. “Agencies can also take advantage of subscription based licensing which, through annualized reviews, offers greater flexibility at lower cost compared to traditional licensing models."

“The terms of this new agreement are perfectly aligned with what the Government has been demanding of agencies and the marketplace: innovative solutions for increased agility and helping agencies collaborate through license sharing. This is an important contributor to better public services and smarter spending of taxpayer money,” he added.