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An update on the ongoing discussions with Microsoft

Socitm, LGA and CCS are continuing to meet with Microsoft colleagues to work through the issues and concerns that have been raised regarding price increases by our members. These meetings will be an ongoing feature so that we can strengthen our relationship with Microsoft and between the various parties and to continue to lobby our sectoral views. At the most recent meeting on 17th December, the following actions have been agreed:

    • Customers with renewals on or before the 30 June 2019, will be able to do so based on the September 2018 price list, if they agree to renew by 31st March 2019. This allows customers to avoid the price rise from October 2018 and the further price rise due in January 2019.
    • For local authority customers that currently have an on-premise estate and are due to renew on or before 30 June 2019, MS will work with the local authorities on a case-by-case basis to ensure that the most cost-effective arrangement is put in place for the council; to enable the most practical arrangement to transition from current arrangements, factoring in discounted rates for on-prem products, to adopting a ‘cloud’ solution as per the individual council’s requirements. MS have confirmed that they will work with their resellers to achieve this.
    • MS will work with councils who are on-prem and have been unable to justify a business case for the upgrade to cloud services, to achieve this.
    • MS have agreed to provide additional support for five councils to help them optimise the investment in Microsoft products and services and to better realise cost-effectiveness and efficiencies within the authority. The councils selected are Surrey, Dudley, Leicestershire, Norfolk and LGSS. These councils will be used as case studies to showcase how other councils can maximise the return on the investment of Microsoft products and services.
    • MS will consider how they can provide certainty in pricing for a longer period.

Additionally, any councils that have an agreement that comes up for renewal before end June 2019 will need to advise their Microsoft account manager and reseller and inform Socitm and LGA that they wish to be considered to have the September 2018 price list applied to the renewal. MS will consider this request on a case-by-case basis, To secure this arrangement, we suggest an email as follows:

‘As requested by Microsoft (MS) at the meeting on MS licensing with the Crown Representative, Local Government Association (LGA), Society of Information Technology Managers (SOCITM), Crown Commercial Services (CCS) and representatives from other Local authorities on the 29th October 2018, council X is formally writing to MS before the deadline date of 31st March 2019 to request the extension timeframe for renewal due to the complex nature of the renewal and to safeguard against the additional October 2018 price uplift’.

This request will be considered subject to MS confirming that council X:

  1. Has met the deadline date of 31st March 2019 to request the extension and informs the relevant stakeholders as necessary.
  2. Will not be subject to the Oct 2018 price increase and therefore receive Sep18 pricing.
  3. Will not be disadvantaged and will have the opportunity to benefit from any discounts applied to the DTA pricing through the ongoing dialogue between Microsoft and LGA/CCS/SOCITM and Crown Representative.

The previously suggested escalation email to Microsoft Corporation has been put on hold for now as Microsoft UK are working with us to find a solution to the issues raised.

We will be in touch with you in the new year with more updates and next steps.

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