Software Development and Licensing Agreement by iii97744


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									                                           Microsoft Services
                                           Customer Solution Case Study

                                           U.K. Council Gains 74 Per Cent Return on
                                           Software Licensing Agreement in Year One

Overview                                   ―Our £46,700 savings are a major contribution to
Country or Region: United Kingdom
Industry: Government—Local                 meeting government targets, but we have also
government agencies
                                           achieved a far more compliant and resilient
Customer Profile                           infrastructure.‖
Gravesham Borough Council is a local
                                                           Darren Everden, Service Manager for IT, Gravesham Borough Council
authority in the United Kingdom that
provides public services to a population
of 98,000 in north-west Kent, 25 miles
from London.
                                           Gravesham Borough Council in the United Kingdom (U.K.) faced
                                           a challenge to ensure the best use of its software assets given
Business Situation
Nearing a break point in its existing
                                           the government drive for efficiency. The authority brought in
agreements, the council wanted a cost-     Civica Services to review its Microsoft infrastructure for
effective licensing model to make the
most of its software assets and support
                                           compliance. It also wanted advice on using the new Public
its technology roadmap.                    Sector Agreement—PSA09—for cost-effective software licensing
                                           devised by the government and Microsoft. Under this licensing
Civica Services recommended a              model, Gravesham has saved £46,700 (U.S.$74,900), equivalent
subscription licensing model under the
new Microsoft Public Sector Agreement
                                           to 80 per cent of its annual software spend. It is making a 74 per
to make savings and help ensure            cent return on investment (ROI) from the Microsoft Software
                                           Asset Management review—far more than its original target. The
Benefits                                   council now has an achievable three-year roadmap for IT
 Meets government cuts target
 Saves on applications and server
                                           development. This includes a refresh of all desktop software and
  licences                                 a virtualised infrastructure to enhance management and cut
 Improves efficiency
 Helps realise technology roadmap
                                           operational overheads.
                                       Situation                                      program licence review. This would help
―Civica Services                       Gravesham Borough Council in the United        Gravesham plan an effective three-year
                                       Kingdom (U.K.) provides public services to     strategy by reviewing its software assets
reviewed our Microsoft                 98,000 people in north-west Kent, England.     and gaining compliance certification. But
infrastructure within                  The local authority needs to ensure the        Gravesham wanted to go a step further.
                                       best possible use of its software assets,      Mark Flynn, Services Director, Civica
very tight timescales,                 especially with pressures from central         Services, says: ―The council engaged our
                                       government on all councils to demonstrate      managed services arm. It wanted to
and, as a result, we                   savings in the use of taxpayers’ money.        significantly reduce its software spend by
were able to enter into                                                               effectively managing all the council’s
                                       The council has a reputation for innovation    software assets.‖
the new Microsoft                      in information and communications
                                       technology, having recently become the         By working with Civica Services, Gravesham
PSA09 licensing                        first council to launch a phone application    identified the subscription software model
agreement in the most                  for residents to report graffiti, antisocial   under PSA09 as the most appropriate
                                       behaviour, and housing repairs. Yet            licensing model for the council, given the
cost-effective way.‖                   innovation is only possible if software        current budget cuts in local government
                                       assets are well managed throughout their       expenditure. PSA09 had introduced
 Darren Everden, Service Manager for
                                       life cycles. Darren Everden, Service Manager   changes to the pricing model for the
      IT, Gravesham Borough Council
                                       for IT, Gravesham Borough Council, says:       Enterprise Agreement, making it more cost
                                       ―Software asset management should not be       effective for many public sector
                                       viewed as an optional administrative           organisations to choose subscription
                                       process, but as a key mechanism for            licensing rather than perpetual licensing.
                                       transforming software from a cost centre to
                                       a strategic asset.‖                            Flynn says: ―Subscription licensing brings
                                                                                      immediate savings, but it also sustains that
                                       In the second quarter of 2009, Gravesham       advantage. It guarantees that you can
                                       was coming to the end of a three-year          change the number of licences you
                                       Microsoft Services Enterprise Agreement        require—both up and down—with a
                                       for low-cost volume licensing of software.     greater degree of flexibility than with
                                       The local authority was aware of the new       perpetual licensing. At each anniversary of
                                       Microsoft Public Sector Agreement—             the subscription agreement, you can
                                       PSA09—devised between the government           choose whether to scale up or down
                                       and Microsoft as a new software                without restriction—and can even cancel
                                       purchasing model for the U.K. public sector.   the subscription enrolment altogether.‖

                                       Gravesham, with 450 users of the Microsoft     Everden adds: ―Civica Services reviewed our
                                       Office suite of products, wanted to achieve    Microsoft infrastructure within very tight
                                       a return on investment (ROI) over three        timescales, and, as a result, we were able to
                                       years of the cost of any software licensing    enter into the new Microsoft PSA09
                                       review. The council was already working on     licensing agreement in the most cost-
                                       procurement with Civica Services as a          effective way. As a by-product for the
                                       reseller.                                      Software Asset Management review, we
                                                                                      have also gained compliance certification in
                                       Solution                                       line with Information Technology
                                       Civica Services initially recommended a        Infrastructure Library (ITIL) guidelines—a
                                       Microsoft Software Asset Management
                                           globally recognised set of best practices for   so Microsoft gave Gravesham a timeframe
                                           IT management.‖                                 to replace all installations with Microsoft
                                                                                           Office Professional. Flynn says: ―Civica
                                           Benefits                                        Services also provided a list of licensed but
                                           Gravesham Borough Council achieved first-       unused software installations and
                                           year savings of £46,700 (U.S.$74,900)—          recommended re-harvesting these
                                           equivalent to 80 per cent of its annual         licences.‖
                                           software budget—through the Civica
                                           Services Software Asset Management              In addition, Gravesham has cut costs by 27
                                           review. It was followed by adoption of          per cent through using the most cost-
                                           subscription licensing under PSA09 and          efficient licensing model for Windows
                                           supported by an in-depth Civica Services–       Server and Microsoft SQL Server. Further
                                           developed Software Asset Management             savings were made through a review that
                                           service, tailored to the council’s needs. The   discovered a surplus Windows Server
                                           savings represent a 74 per cent ROI, which      Enterprise licence.

―Our £46,700 savings are                   is significantly more than the original
                                           estimate. Gravesham now has a clear             PSA09 Agreement Improves Efficiency
a major contribution to                    roadmap of how to develop its IT over the       The Software Asset Management review
                                           next three years, which includes a desktop      helped prevent any shortfalls in Microsoft
meeting government                         refresh and virtualisation. Everden says:       Office licences by advising the correct

targets, but we have also                  ―Civica Services has shown Gravesham
                                           Borough Council how to optimise asset
                                                                                           number of devices to licence and how best
                                                                                           to apply PSA09—making up around 25 per
achieved a far more                        management processes to reduce software         cent of the total savings. Under the
                                           spend.‖                                         software optimisation model, Civica
compliant and resilient                                                                    Services analysed how much staff time was

infrastructure."                           Gravesham Meets Government Targets
                                           and Ensures Compliance
                                                                                           spent internally to manage software assets
                                                                                           and realised £8,000 in savings.
 Darren Everden, Service Manager for IT,   In the current economic climate, local
           Gravesham Borough Council       authorities are all required to meet            Software Asset Management Review
                                           stringent government efficiency targets of      Helps Support IT Roadmap
                                           up to 30 per cent. Gravesham is no              The subscription licensing model gives
                                           exception. Everden says: ―Our £46,700           Gravesham the flexibility to manage its
                                           savings are a major contribution to meeting     technology roadmap in the most cost-
                                           government targets, but we have also            effective way. Over the next three years,
                                           achieved a far more compliant and resilient     Everden and his colleagues are planning a
                                           infrastructure. It now meets the                desktop refresh and virtualization, among
                                           Government Connect Secure Extranet              other initiatives. He adds: ―The subscription
                                           (GCSx) Code of Connection compliance            licensing model with Microsoft under
                                           requirements.‖                                  PSA09 means we can avoid the risk of over
                                                                                           provisioning and buying more than we
                                           Council Makes Savings on Applications           need.‖
                                           and Server Licences
                                           Around 34 per cent of the savings made by
                                           Gravesham Borough Council were on
                                           applications. The review showed that
                                           multiple versions of Microsoft Office were
                                           installed on some machines at the council,
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                                                       Software and Services
                                                          Services
                                                           − Microsoft Public Sector Agreement

This case study is for informational purposes only.

Document published April 2011

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