HomeMy WebLinkAboutItem 11e - Microsoft Enterprise License Agreement
DATE: September 6, 2022
TO: Honorable Mayor and City Council
FROM: Hue Quach, Administrative Services Director
By: Wilson Luo, Information Technology Manager
SUBJECT: THREE-YEAR RENEWAL OF THE MICROSOFT ENTERPRISE
LICENSE AGREEMENT WITH SOFTWAREONE, INC. FOR
MICROSOFT OFFICE 365 IN THE AMOUNT OF $374,867
Recommendation: Approve
SUMMARY
The City’s core software infrastructure is based on Microsoft’s product lines, which
require continuous maintenance as well as periodic version upgrades to meet
operational needs and information security standards. The infrastructure requires an
annual agreement to maintain a Microsoft Enterprise License Agreement (“MELA”)
through SoftwareOne, Inc. The MELA will continue to ensure the City is in conformity
with software licensing requirements and provide access to new version release
updates. Additionally, the MELA allows the City to consistently modernize server and
desktop operating systems, introduce state-of-the-art enterprise collaboration software,
ongoing vendor support, and cloud-based services.
A budget of $125,000 has been approved in FY 2022-23 adopted budget for the
renewal of this agreement. Subsequent annual costs will be budgeted in the Equipment
Replacement Fund in their respective years. It is recommended that the City Council
approve a three-year renewal contract of the Microsoft Enterprise License Agreement,
for Microsoft Office 365 with SoftwareOne Inc. totaling $374,867 over the three-year
period.
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 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
Microsoft Enterprise License Agreement for Office 365
September 6, 2022
Page 2 of 4
products were more than 10 years old and aged beyond Microsoft’s support period.
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. The modern product lines now licensed through the
MELA have supported numerous upgrades and streamline the City’s technology
platform across all City departments.
DISCUSSION
The City Council approved a three-year MELA agreement with SoftwareOne Inc. on
September 17, 2019. 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 (Windows 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
September 6, 2022
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
The City obtained three quotes from national software distributors authorized to sell
Microsoft licenses. 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 below.
Company 3 Year Installment
SoftwareOne Inc. $374,866.11
CDW $378,895.05
SHI International $380,172.06
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 three-year MELA renewal agreement is in the amount of $374,867 with an annual
cost of $124,956. A budget of $125,000 has been appropriated in the FY 2022-23
Adopted Budget. Subsequent annual costs will be budgeted in the Equipment
Replacement Fund in their respective years.
Microsoft Enterprise License Agreement for Office 365
September 6, 2022
Page 4 of 4
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is therefore, exempt under, the California Environmental Quality Act
(“CEQA”); and approve a three-year renewal of the Microsoft Enterprise License
Agreement with SoftwareOne Inc. for Microsoft Office 365 in the amount of $374,867
over the three-year period.
Attachment: Microsoft Enterprise License Agreement