Sam Varghese
Wednesday, 27 May 2009 16:00
Opinion and Analysis
Page 1 of 3
One of the money milking machines in Microsoft's stable has just gone dry. It's a little teat but significant in that it shows the way for other, bigger teats to be pulled out of the Redmond suction pump.
New Zealand's government-wide deal to purchase Microsoft products has fallen apart. The fact that the country has won
awards for its work towards adopting open standards and open source means that it has the resources to look at other options for its software.
Instead of the three-year deals that Microsoft had concluded in the past, New Zealand has now retained the option to obtain "recommended retail price certainty for agencies as a basis for their individual negotiations.
The New Zealand State Services Commission says it will support agencies "to explore how they can maximise their ICT investment and achieve greater value for money."
That phrase should be enough to bring Steve Ballmer to the boil. The kool-aid that Microsoft has been selling to governments worldwide has been that it provides the best value for money.
A small country of four million has now chosen to contradict that fallacy and it's one that has the expertise to show that it can prove that statement.
In a media release, the SSC said: "It became apparent during discussions that a formal agreement with Microsoft is no longer appropriate.
"Microsoft have agreed to provide recommended retail price certainty for agencies as a basis for their individual negotiations, and the State Services Commission will be supporting agencies to explore how they can maximise their ICT investment and achieve greater value for money."
"Since 2000 the government has negotiated a series of three-year agreements with Microsoft, enabling public sector agencies to purchase Microsoft products on an opt-in basis."
"In late 2008 the State Services Commission commenced leading the re-negotiation of the G2006 Microsoft agreement on behalf of government agencies, and established an advisory steering committee comprised of senior executives from the largest IT purchasers in the public sector."
CONTINUED
