Government discounts remain on table, says Microsoft

Microsoft is approaching government agencies directly in the wake of the collapsed G2009 all-of-government software licensing negotiations.

Microsoft New Zealand managing director Kevin Ackhurst says the standard set of terms and conditions applying to government agencies regardless of size or IT spend has changed little since the 2006 licence deal was struck. These terms, he says, still offer significant discounts.See also: G2009 - there's no dealAckhurst says the way things were negotiated previously has run its course.

"The whole environment has changed, there have been changes within government, we'll now be working with the State Services Commission and the Department of Internal Affairs, technology has changed, there's the move toward cloud computing, there are many new offers," he says, explaining the sudden end to the G2009 talks.

"The main purpose of the previous frameworks has been to provide certainty about terms and price," Ackhurst says. "The terms are not being changed very much, and Microsoft has provided details of price to the State Services Commission and is talking with individual agencies this week.

"There have always been individual agreements with the various government departments or agencies. Nothing has really changed as there's still a standard set of terms and conditions applicable to agencies regardless of size or IT spend."

Neither Microsoft nor the State Services Commission will comment on the specifics of pricing, financials or discounts, saying these details are confidential.

"Microsoft believes we provide a great value proposition, a solution that's fit for government purpose. The New Zealand government gains a strategic benefit from Microsoft's global relationships and proven approaches to helping governments deliver better services for all citizens," Ackhurst says.

He adds that Microsoft is happy with the outcome of the negotiations.

"We have developed a deeper relationship with all parties through this process which has allowed us to get to a mutually beneficial outcome."

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