The New South Wales Department of Finance, Services and Innovation (DFSI) has put a temporary freeze on Microsoft reseller agreements as it seeks to renegotiate terms with the vendor.
The DFSI is asking agencies to put a 20-day hold on making any non-critical product and solutions purchases from Microsoft.
The department is currently negotiating with the vendor on the whole of government Microsoft Enterprise Agreement, or contract 2310, which is due to expire on 31 May. Other customer contracts under it will also expire on or following that date.
The DFSI has advised that any agency wanting to sign any customer contract renewals before the new agreement is in place should seek approval from it.
"The NSW Government is negotiating its existing agreement with Microsoft. This is a complex contract involving multiple agencies with different requirements," a spokesperson from the DFSI told CRN.
"The NSW Government takes negotiations seriously with its vendors, and works to ensure any agreement meets its digital requirements and ensures the best outcome for the people of NSW. Due to the commercial in confidence nature of these negotiations, it would be inappropriate to comment further."
The department said that in case negotiations are not concluded by 1 June, it will seek Microsoft’s confirmation on the following items:
- That the agreement and each customer contract placed under it — including associated enrolments, licences and subscriptions — are deemed to be extended on the same terms and conditions to 30 June.
- That Microsoft products and services are provided and made available at the same level of support currently provided to all eligible customers under the agreement until 30 June.
- That Microsoft will not be issuing any invoices during the period.
Microsoft told CRN that it would not be providing a comment at this time.
Last month, iTnews reported that the federal government handed its Microsoft licensing deal back to Data#3 as part of a new buying scheme with the establishment of the new software services and licensing panel.
The reseller has won back the whole-of-government deal twice despite previous attempts to open the deal up to a wider pool of suppliers.