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
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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
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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.