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HomeMy WebLinkAboutItem 10f - Renewal of License Agreement for Microsoft Office 365 DATE: October 6, 2020 TO: Honorable Mayor and City Council FROM: Hue Quach, Administrative Services Director By: Wilson Luo, Information Technology Manager SUBJECT: RENEWAL OF MICROSOFT ENTERPRISE LICENSE AGREEMENT THROUGH SOFTWAREONE, INC. FOR MICROSOFT OFFICE 365 IN THE AMOUNT OF $111,282 Recommendation: Approve SUMMARY This report recommends approval to maintain a Microsoft Enterprise License Agreement (“MELA”) through SoftwareOne, Inc., leveraging favorable pricing accessible to local government entities through the County of Riverside’s Master Agreement 01E73970. Renewal of MELA will allow the City to maintain conformity with software licensing requirements and continue access to cloud-based services and ensure availability of applicable software version updates. This is the second year of a three-year MELA term with SoftwareOne. A budget of $111,282 has been appropriated in the Fiscal Year 2020-21. Subsequent annual costs are 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 renewal of the Microsoft Enterprise License Agreement through SoftwareOne. 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, prior to the MELA many of the City’s software products were more than 10 years old and aged beyond Microsoft’s support period. The continued use of these products created significant security risks to the Microsoft Enterprise License Agreement for Office 365 October 6, 2020 Page 2 of 4 City’s information technology operations. The modern product lines now licensed through the MELA have supported numerous upgrades across all City departments. Historically, the City’s Information Technology Support Services (“ITSS”) providers have assisted with the purchase of software licensing through various procurement vehicles. Prior to the MELA, there was no centralized mechanism enabling the City to directly manage and ensure compliance with software licensing requirements. Establishing the MELA has resolved this administrative deficiency. DISCUSSION Renewing the MELA will allow the City to continue the modernization and maintenance of server and desktop operating systems, provide access to state-of-the-art enterprise collaboration tools, office productivity platforms, product version updates, vendor support, and cloud-based services. Included in the MELA is licensing for Microsoft’s Office 365 Government G3 platform comprised of numerous applications and data storage 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 municipality standard Security Policy requirements and are suitable for law enforcement agencies. 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. Table 1: Current Product Version 1. Server Operating System (2019+) 2. Desktop Operating System (10 Enterprise) 3. Microsoft Exchange Server (2019+) 4. Office 365 (2019+) 5. Microsoft SQL Server (2017+) 6. Microsoft Project (2019+) 7. Microsoft Visio (2019+) Additional benefits from renewing MELA include the following: • Software Updates o New Version Rights for Applications o New Version Rights for Windows Desktop Operating Systems Microsoft Enterprise License Agreement for Office 365 October 6, 2020 Page 3 of 4 o New Version Rights for Windows Servers Operating Systems o New Version Rights for Server Client Access License (“CAL”) • Services and Programs o Consolidated License Management 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 SoftwareOne was awarded with a three-year licensing agreement in September 2019, based on the most competitive pricing as shown in Table 2 below. Table 2 Company Annual Installment CDW $134,258 SHI International $126,076 SoftwareOne $111,282 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 A budget of $111,282 has been appropriated in the Fiscal Year 2020-21. 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 October 6, 2020 Page 4 of 4 RECOMMENDATION It is recommended that the City Council determine this project is exempt under the California Environmental Quality Act (“CEQA”); and approve the renewal of the Microsoft Enterprise License Agreement through SoftwareOne, Inc., for Microsoft Office 365 in the amount of $111,282.