Feeds

Cabinet Office: We've cut taxpayers' SAP and Microsoft bills

Tearful giants face starvation on < £300m this year

Top 5 reasons to deploy VMware with Tegile

The Cabinet Office estimates it will squeeze out £65m in savings this fiscal year through a public-sector-wide deal it recently cut with Microsoft.

As revealed by The Channel, the Public Sector Agreement 2012 replaces the last iteration (PSA09) from 1 July – with licences locked for three years at 1 per cent above previous levels.

The Cabinet Office said the savings are calculated by plotting the new discount structure prices against the projected spending plans for central government until March next year.

Exact savings will depend on the specific purchases made by various departments across the public sector, the Cabinet Office admitted.

At the same time, the Cabinet office has cut a deal with SAP that is expected to yield savings of more than £3m this financial year and up to at least £5m by 2015 – depending on licence volumes procured.

Housed in this agreement with SAP is a new tiered discount structure for licences based on spend and a 22 per cent cut in year-on-year maintenance charges.

A spokeswoman confirmed to The Channel that the entire public sector spend with Microsoft and SAP was north of £300m and £50m respectively from April 2010 to March 2011.

She confirmed Cabinet Minister Francis Maude and his Efficiency Reform Group are to meet 22 "strategic suppliers" this week – including HP, Capita and IBM – to ascertain whether the government can eke out savings with them.

Maude said: "The old days of signing huge, inflexible IT contracts are gone forever ... These new deals will provide better IT at cheaper prices for police, NHS and council workers across the country". ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.