Data#3’s (ASX:DTL) new whole-of-government Microsoft software procurement deal with the Federal Government will be worth $70 million over the next year for the Australian integrator.
It was revealed in March that Data#3 had been named as the sole provider of Microsoft licensing solutions on the Australian Government’s new whole-of-government software procurement arrangement, which is set to initially run from March this year to March 2021.
The win saw Data#3 once again retain its coveted position as the sole whole-of-government Microsoft licensing provider under the new panel.
It previously held the position as sole provider on the pre-existing whole-of-government Microsoft Large Account Reseller (LAR) Deliverables procurement panel, which has been replaced by the new panel under the Government’s Digital Transformation Agency (DTA).
According to tender documents published on 16 May, the value of Data#3’s provision of “Microsoft Large Account Reseller Deliverables - VSA3 Annual CDL Software Assurance” on the new panel is worth at least $70 million over the initial contract terms, which span from February 2018 to June 2019.
When it was first announced, it was made clear that the new panel arrangement would begin its life with just one category: Microsoft Licensing. In the future, however, more categories will be added for other software licensing and related services.
As such, the only provider listed on the panel at present is Data#3. However, the DTA said it will be approaching the market for additional categories to the whole-of-government procurement arrangement.
The agreement between the Government and Data#3 came several months after it emerged that the DTA would lead the development of a new whole-of-government software licensing and services procurement (SLS) panel.
The DTA, which grew out of Prime Minister Malcolm Turnbull’s Digital Transformation Office (DTO), put the call out on 17 July 2017 to potential suppliers to provide feedback on the proposed panel.
The proposed procurement arrangement was intended to improve the existing system for software licensing within government and provide an opportunity for more providers to sell to government bodies.
Meanwhile, the DTA kicked off the next step in its endeavour to establish a dedicated IT hardware procurement marketplace for the Federal Government in early May, calling for enterprise storage providers to step up and offer their wares.
On 10 May, the DTA issued an approach to market (ATM) for enterprise storage, the first hardware category in its proposed procurement marketplace.