R6112 Microsoft Enterprise Agreement

This contract renews the Microsoft Enterprise Agreement, providing access to Microsoft products and Azure Cloud services, including Windows OS, Office tools (Outlook, Word, Excel), collaborative tools (SharePoint, Teams, Phone), SQL database, and artificial intelligence tools (Co-pilot). Microsoft products must be purchased through a licensed reseller.

This was procured via Crown Commercial Service (CCS) Technology Products & Associated Services 2 RM6088 – Lot 3: Software and Associated Services

The London Borough of Tower Hamlets currently holds a Microsoft Enterprise Agreement, which is a contractual arrangement providing access to a wide range of Microsoft software and services. This includes operating systems such as Windows 10 and 11, core applications like Outlook, Word and Excel, as well as collaboration tools including Microsoft Teams, SharePoint and OneDrive. These tools are widely used across the Council to support communication, document sharing and hybrid working.

The agreement also includes access to Microsoft Azure, Microsoft’s cloud computing platform. Azure provides a secure and scalable environment for storing data, running systems, and delivering digital services. It reduces the Council’s reliance on physical servers by enabling secure online hosting of applications, data backup, and system management. Azure also supports the delivery of essential services across service areas and underpins the Council’s digital transformation efforts.

Under Microsoft’s business model, licences and services can only be purchased by public sector organisations through authorised resellers. Pricing is set at standard rates, meaning that direct cost savings through procurement and the usual competitive processes alone are limited. However, Microsoft offers various discounts on key products to public sector organisations under the Strategic Partnership Arrangement 2024 (SPA24) with central government. Additional discounts may be secured through competitive pricing from resellers. The CCS aggregated procurement model enables public sector bodies to combine their purchasing requirements, thereby increasing collective buying power and maximising potential discounts.

The process was fully managed by CCS’s dedicated aggregation team. Advantages include access to expert advice from CCS’s in-house software specialists, no obligation to enter a contract until award, and a fully compliant route to appoint a Licensed Software Reseller (LSP). Participating authorities also benefit from potential cost avoidance and efficiency gains by avoiding the need to conduct their own procurement exercises.