Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: October 16, 2025

Purpose:

Content: Decision   RESOLVED that Cabinet:   1.                  Noted the current Microsoft E3 Software Enterprise Agreement renewal for Microsoft Office/Server/Azure Cloud/Microsoft Project/Visio/PowerBi/Co Pilot software licencing. 2.                  Noted the term being renewed was for 3 years (with optional +1 +1) to commence from November 2025 through to October 2028 at a total cost of £140,937.62 pa, subject to business requirements and licence adjustments within each year, running up to a total cost of £422,812.86. 3.                  Noted that the costs can be met in full from the existing Information Digital Services (IDS) budget 4.                  Noted the renewal has been approved and signed via appropriate waiver process for a direct award under an approved framework.   Reasons for decision   1.     The purpose of this report is to provide an update on the cost expenditure for our 3 year Microsoft E3 Software Enterprise Agreement renewal as a key function of our Operating systems software for backend Server systems as well as front end user Microsoft Office/Outlook/Active Directory licensing. 2.     The Cabinet to note: •                      The update renewal for Microsoft E3 Enterprise Agreement renewal to commence from October 2025 for 3 year term with option to add +1 +1 renewal years under the current incoming agreement. •                      The approved and signed contract award waiver under Procurement Services (Formerly KCS) ref: Y23065 Software Products & Associated Services •                      The allocated funding for the annual software renewal allocated from the software licences budget. •                      Hertsmere has sent the requirements to Microsoft via our provider in September 2025, in order to allow enough time for the contract to be completed by the end of October 2025. 3.     The report to Cabinet is not commercially sensitive as this falls within an approved framework and will be updated to our published contract register once the order has been finalised.   Alternative Options Considered   There is no alternative as this is a critical renewal for provision of Microsoft Software licensing at the E3 level. There will most likely be an upgrade in the future to the next E5 Tier to allow use of enhanced features for Security and Governance products. However, this may be aligned to future Devolution Plans which will aim at consolidating and enhancing Microsoft product features. In addition, the Microsoft Platform is integrated to core infrastructure server systems, Cloud technology, and Mitel Voice integration and therefore no alternative is required.