Councillor Dana Carlin, Cabinet Member for Finance and Local Investment, approved a new contract for Microsoft cloud server licence subscriptions. This decision ensures the continuation of critical digital operations for the council and avoids potential disruption to services.

Microsoft Server and Cloud Enrolment

Councillor Dana Carlin approved the award of a new contract for the supply of the council's Microsoft (MS) cloud server licence subscriptions to Bytes Software Solution Ltd. This contract, valued at up to £720,000 over three years, will commence on 1 May 2024 and run until 30 April 2027. The decision was made under Contract Standing Order (CSO) 3.01(b), which requires contracts valued at £500,000 or more to be awarded by the Cabinet or a delegated Lead Member.

The new agreement is through a Microsoft Server and Cloud Enrolment (SCE) and a Memorandum of Understanding (MoU) with Microsoft, facilitated by Bytes Software Solution Ltd, a Microsoft Licensing Solution Partner (LSP). This arrangement allows the council to benefit from the new Public Sector (PS) MoU, known as the Digital Transformation Agreement 2024 (DTA24), which provides baseline pricing and significant discounts.

The current MS SCE agreement was set to expire on 30 April 2024, with no option for extension. Without a new contract, the council faced the risk of licences no longer being supported, products not receiving essential updates or security patches, and a breach of Microsoft's 'Product Terms'. This could have led to approximately 259 physical and virtual IT servers ceasing to function effectively, impacting critical services. The report highlighted that MS software is strategically aligned with the council's Digital Roadmap and is a key enabler for delivering essential services.

Several alternative options were considered. Take No Action was rejected as it would lead to service disruption and non-compliance. A further competition tender was deemed less efficient than a direct award through the Crown Commercial Services (CCS) framework, which offers access to DTA24 pricing and discounts. Adding the server licence requirement to the existing MS Enterprise Subscription Agreement (ESA) contract was not commercially viable due to higher costs. Moving to non-Microsoft software was considered too disruptive and would require significant rework of IT systems and business processes. Finally, tendering without the new MoU discount was rejected as it would result in higher costs and a longer procurement timeframe.

The report noted that while the new DTA24 terms are expected to increase overall costs compared to the previous DTA21 MoU due to currency alignment and annual price increases, the new SCE agreement will lock in subscription costs for the three-year term, enabling accurate budgeting. The total contract value of £720,000 includes £642,361.71 for the core licence agreement, funded from the existing Digital Services budget, and £77,638.29 for potential growth, which is currently unfunded and will require specific funding approval for any additional licence purchases.

Councillor Carlin queried the scope of the contract and was assured that an annual review would be conducted to assess the council's ongoing needs, and any additional spend would require agreement from the Director of Culture Strategy and Engagement in consultation with the Cabinet Member for Finance and Local Investment. The decision was made to approve the contract award, with the Cabinet Member signing off on the decision.

The meeting also noted information regarding filming at meetings, with no apologies for absence or declarations of interest recorded. There were no deputations, petitions, or questions raised. The majority of the meeting, including detailed financial and business information related to the Microsoft contract, was held in private session to exclude the press and public.