Microsoft wins 120,000 desktop MoD contract

The Ministry of Defence has signed a three-year PC software subscription deal with Microsoft, tying the department even more closely to the software provider.

The Enterprise Agreement will cut the thousands of separate software orders placed by the MoD each year down to a single annual supply.

The main drivers, according to the department, are to cut costs and reduce the red tape associated with IT procurement. The deal will also simplify IT support for its 120,000 desktop PCs and mean the department can keep a closer eye on software licences.

The MoD is not releasing any financial figures on the deal but a spokeswoman for the MoD's defence communication services agency said the savings will be "significant".

However, she told silicon.com: "This is not just about cost. This is a rationalisation of the whole of our licensing process."

The three-year agreement covers products including Windows XP, Word 2002, Access 2002 and Windows 2000 Professional. There are currently around 75,000 Microsoft licences running across the MoD.

Two weeks ago the NHS announced a similar deal with the software giant, igniting criticism from some NHS IT managers concerned over the restrictive nature of the agreement.

The MoD has the option to extend the agreement to a fourth year, but will then be required to offer the contract to commercial tender again. Some critics have already voiced concerns that Microsoft will be the automatic winner in 2005.

"Let's be realistic," said the MoD spokeswoman, "the organisation in place has an advantage but it's not an overweening advantage."