Oracle scores whole of NZ government deal

Deal makes Oracle the second-largest global ICT supplier to the government

Oracle has secured a three-year deal to supply its software and services to all NZ government departments and agencies, making it the second-largest global ICT supplier to the government.

The deal was negotiated by the Department of Internal Affairs and, according to the department, “cements an 18-month commitment from many agencies across government and shows the strength of agencies working collaboratively.”

It follows the announcement in March 2014 of “a new ICT common capability programme” led by the Department of Internal Affairs. The department’s web site said: “The Software Acquisition Strategy (SAS) programme will extend the successful Microsoft G2012 cross-government licensing approach to other global software providers. The first focus will be on VMware, Oracle and Citrix.”

Computerworld was unable to find any indication on the website that deals with VMware and Citrix have been concluded.

Acting Government Technology Officer, Russell Cooke, said: “We have established the New Zealand Government as a single customer, which has given us a number of direct benefits including the scale to negotiate more favourable and flexible terms, particularly around costs and minimum commitments. This approach has enabled us to negotiate substantial savings and benefits tailored to government needs and requirements.”

He added: “This is an exciting and important position for New Zealand that demonstrates the collaboration and collective strength that agency chief executives aspired to when we developed the Government ICT Strategy. Our vision is to create a single, coherent government ICT system that enables a radical transformation of public services. Our agreement with Oracle is another big step towards achieving this goal.”

According to the department’s web site, the deal covers existing and new licensing of Oracle’s software, cloud service and appliances’ catalogue and allows eligible government agencies to buy new software licences, cloud services and appliances from Oracle under standardised terms and for existing software licences to be transferred to these terms.

“The establishment of government agencies as a single customer has created an economy of scale and an ability to negotiate considerable benefits including… discounted rates on all on-premises products and cloud services; [the] ability to transfer licences between agencies and authorised parties; [the] ability to reinvest legacy on-premises licensing in cloud services; [the option for agencies to take up a new, unique support service.”

The department said the deal was “projected to generate significant savings across the public sector over its initial three-year term, as well as time and resources through a simplified procurement process.” (There is an option for a two-year extension).

It added that the deal made the government one of Oracle’s top 200 global customers and would provide it with direct access to Oracle’s strategic decision makers.

“The Department of Internal Affairs, the lead agency for the agreement, will provide a representative to liaise with Oracle and attend global forums on behalf of New Zealand’s government sector,” the department’s statement said.

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