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Home My WebLink AboutItem 11d - Purchase of Microsoft Enterprise License Agreement DATE: September 17, 2019 TO: Honorable Mayor and City Council FROM: Hue Quach, Administrative Services Director By: Wilson Luo, Information Technology Manager SUBJECT: PURCHASE OF A MICROSOFT ENTERPRISE LICENSE AGREEMENT FROM SOFTWAREONE, INC. FOR MICROSOFT OFFICE 365 AND PROJECT MIGRATION; AND APPROVE THE SERVICES OF SCIENTIA CONSULTING GROUP FOR PROFESSIONAL MIGRATION SERVICES IN THE AMOUNT OF $135,282 Recommendation: Approve SUMMARY This report recommends approval to establish and maintain a Microsoft Enterprise License Agreement (“MELA”) through SoftwareOne, Inc., using the County of Riverside’s Master Agreement 01E73970, and professional migration services by Scientia Consulting Group. The MELA will allow the City to ensure conformity to software licensing requirements and provide access to continuous version updates. Additionally, MELA allows the City to modernize server and desktop operating systems, introduce state-of-the-art enterprise collaboration, ongoing vendor support, and cloud- based services. A budget of $136,000 has been appropriated in the FY 2019-20 adopted budget. Subsequent annual costs are projected and included in the Equipment Replacement Fund’s Five Year Expenditure Forecast and will be proposed for adoption in their respective years. It is recommended that the City Council approve the purchase of a Microsoft Enterprise License Agreement from SoftwareOne, and authorize the professional services of Scientia Consulting Group for migration services. Microsoft Enterprise License Agreement for Office 365 September 17, 2019 Page 2 of 5 BACKGROUND The City’s core software infrastructure is based on Microsoft’s desktop, server, productivity, and communication products that require continuous maintenance patching as well as periodic version upgrades in order to meet operational needs and information security standards. While Microsoft provides the requisite patches and upgrades for several years following a product’s initial release, many of the City’s software products are more than 10 years old and the majority of the versions are nearing or have aged beyond Microsoft’s support period. The continued use of these products creates significant security risks to the City’s information technology operations, collaboration limitations and performance challenges for the user community, and support challenges for the Information Technology team. Specific examples of currently used software that has already aged beyond the support period include: Office 2007, Office 2010, Office 2013, Server 2003, and various versions of the SQL database platform. Specific examples of currently used software that is nearing end of support include: Server 2008 (expires January 2020), Exchange 2010 email system (expires January 2020), Windows 7 (expires January 2020), and Windows 10 (expires November 2019). Historically, the City’s Information Technology Support Services (“ITSS”) providers have assisted with the procurement of software licensing through various purchase vehicles. At this time there is no centralized mechanism enabling the City to directly manage and ensure compliance with software licensing requirements. Establishing the MELA will resolve this administrative deficiency. DISCUSSION The MELA will allow the City to modernize server and desktop operating systems, introduce state-of-the-art enterprise collaboration and office productivity platforms, provide access to continuous product version updates, vendor support, and cloud- based services. Moreover, the agreement spreads the initial software licensing cost over a three-year period rather than requiring a lump-sum purchase for fixed software versions ineligible for version updates. Included in the MELA is licensing for Microsoft’s Office 365 Government G3 platform, providing numerous applications and benefits. These include Office desktop applications, government-only cloud file storage and sharing, online meetings and instant messaging, HD videoconferencing, intranet and team sites, personalized search and discovery, self-service business intelligence, enterprise management of apps, eDiscovery tools, and other services that meet FBI Security Policy requirements and suitable for law enforcement agencies. Many municipal agencies in the surrounding area such as Chino Hills and Alhambra have already migrated to Office 365 and are now leveraging Microsoft’s Cloud technology to reduce costs and improve efficiency. Microsoft Enterprise License Agreement for Office 365 September 17, 2019 Page 3 of 5 Examples of current operating systems and applications applicable to the City and eligible for continuous upgrade under MELA includes the platforms identified in Table 1. Additional benefits from MELA include the following: • Software Updates o New Version Rights for Applications o New Version Rights for Windows Client o New Version Rights for Servers o New Version Rights for Server Client Access License (“CAL”) • Services and Programs o Consolidated License Management o Training Vouchers o Additional 7.5% Discount Above Other Volume Licensing o Additional 15% Discount Across All 3 Enterprise Products o Home Use Program • Maintenance and Support o 24 x 7 Phone Support Incidents o Web Incidents • Transition Tools o Extended Hot-Fix Support for Windows Client and Servers The City obtained three quotes from national software distributors authorized to sell Microsoft licensing under the Riverside County agreement. SoftwareOne provided a quote that has the most favorable pricing and is within the City’s budget. The quotes received are listed below in Table 2. Current Product Version Eligible Product Version 1. Server Operating System (2003-2012) 1. Server Operating System (2019+) 2. Desktop Operating System (7-10 Pro) 2. Desktop Operating System (10 Enterprise) 3. Microsoft Exchange Server (2010) 3. Microsoft Exchange Server (2019+) 4. Microsoft Office Suite (2007-2016) 4. Office 365 (2019+) 5. Microsoft SQL Server (2005-2008) 5. Microsoft SQL Server (2017+) 6. Microsoft Project (2010) 6. Microsoft Project (2019+) 7. Microsoft Visio (2010) 7. Microsoft Visio (2019+) Microsoft Enterprise License Agreement for Office 365 September 17, 2019 Page 4 of 5 Company Annual Installment CDW $134,258 SHI International $126,076 SoftwareOne $111,282 The City obtained three quotes from ITSS providers for Office 365 migration services. The City’s current ITSS provider, Scientia Consulting Group, responded with the lowest price and was the only respondent that agreed to complete the project for all users rather than only a small portion. Pricing is not to exceed $24,000 and any long-term or follow-up work will be completed under their existing ITSS agreement. While the Enterprise Agreement is the recommended path forward, spreading the initial software licensing cost over a three-year period, an alternative approach is to pursue fixed version licensing for all current products in the approximate amount of $350,000. However, these fixed versions will eventually need version upgrades, will lack future security, disaster recovery, collaboration capabilities, and ultimately return the City to the present state of relying on legacy software versions. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it is deemed to have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The year-one cost of the proposal is $135,282. Description Year 1 Year 2 Year 3 MELA $111,282 $111,282 $111,282 One-time Migration Service $24,000 n/a n/a Total $135,282 $111,282 $111,282 A budget of $136,000 has been appropriated in the FY 2019-20 Adopted Budget. Subsequent annual costs are projected and included in the Equipment Replacement Five Year Expenditure Forecast and will be proposed for adoption in their respective years. Microsoft Enterprise License Agreement for Office 365 September 17, 2019 Page 5 of 5 RECOMMENDATION It is recommended that the City Council approve the purchase of a Microsoft Enterprise License Agreement from SoftwareOne for Microsoft Office 365 and Project Migration; and approve the services of Scientia Consulting Group for professional migration services in the amount of $135,282.