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REPORT RAPPORT |
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REPORT RAPPORT |
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DATE:
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25 June 2012 |
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TO/DEST:
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Executive Director, Ottawa Police Services Board |
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FROM/EXP:
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Chief of Police, Ottawa Police Service |
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SUBJECT/OBJET: |
RENEWAL OF MICROSOFT ENTERPRISE AGREEMENT LICENSING
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That the Ottawa Police Services Board approve the renewal of a Microsoft Enterprise Agreement through Compugen Inc. for a three year term from 01 July 2012 to 30 June 2015 at an approximate annual cost of $345,637.68, excluding taxes.
Technology is a key support to policing operations. Through automation initiatives, it helps to make policing and support operations more efficient and effective. Through search and analytic capabilities, it provides a way for information to be used to meet the organization’s mission.
The Ottawa Police Service (OPS) computing environment includes a range of computing devices which reflect the unique nature of police operations: desktop computers, laptop computers, in-car mobile laptops, motorcycle mobile laptops and other mobile wireless laptops devices. The software environment is also quite specialized and is dominated by police-specific applications.
The OPS uses Microsoft Office products as a basic component of its computing environment. In June 2008 the Ottawa Police Services Board approved the execution of a Microsoft Enterprise Agreement for the Ottawa Police Service. This report recommends the renewal of the agreement which will also enable the Service to upgrade to the latest version of software (Microsoft Office 2007 to 2012, Microsoft Exchange 2003 to 2010, Microsoft Server Upgrades from 2003 to 2008 and the Microsoft Operating System XP Pro to Windows 7).
The three software licensing agreement options available to the OPS when procuring Microsoft licenses are outlined and discussed below.
Option 1 – Select Agreement
A Microsoft Select Agreement allows eligible Microsoft customers such as the Ontario Government and the Ontario Broader Public Sector (BPS) to purchase Microsoft products at discounted levels for the term of the agreement. Select License allows the OPS to acquire Microsoft technology on a pay-as-you-go basis. The BPS is not bound to any particular products under the terms of the Select Agreement and the OPS is not required to make a 100% licensing commitment to a defined suite of Microsoft Operating/Server/Desktop application software.
The one-time cost to purchase the current version of licensing using the Select Licensing Agreement would be $1,586,383.64, which does not include Software Assurance (so there are no upgrade rights to the next version). Additional costs will be incurred in client access licenses as the back-end products (Windows Server, Microsoft Exchange, SCCM and Sharepoint) are updated. These upgrades are planned for 2012/2013. The approximate costs would be an additional $504,291.
Option 2 – Select Agreement with Software Assurance
A Microsoft Select Agreement with Software Assurance is a maintenance program. It is purchased at the same time a software license is purchased. Software Assurance provides a range of benefits, including training, support, deployment services and rights to future upgrades. Each piece of software is licensed separately. There are no discounts for desktop bundles.
The three-year cost to purchase licensing using the Select Licensing Agreement with Software Assurance and the upgrade rights would be $828,869 per year over the next three years.
Option 3 – Renewal of Current Enterprise Agreement
A Microsoft Enterprise Agreement (EA) requires an organization to license every desktop and laptop computer with a standard, defined suite of Microsoft software products. To facilitate licensing, Microsoft bundles its pricing for the products—making it advantageous to organizations that use them.
The OPS has standardized on most of the Microsoft products available in an Enterprise Agreement, including the MS operating system upgrades, MS Office suite, MS Exchange, as well as several systems that require client access licenses. An EA offers benefits for license management due to the fact that desktop products are bundled; therefore the OPS is not required to manage the licensing for those products individually.
The licensing fee for Microsoft software for the 1645 desktops and laptops at the OPS would be approximately $345,637.68 per year for the next three years if the existing Microsoft Enterprise Agreement is renewed. The Enterprise Agreement includes Software Assurance that, among other benefits, includes upgrade rights to the current software versions at no additional charge.
Staff are recommending the Enterprise Agreement option. When the key benefits are included, it represents the lowest cost and the highest value. It is also very flexible and easy to administer.
Benefits of Using Enterprise Agreement
Key benefits are:
· The ability to spread payments over a three year term which enables OPS to plan and budget for software license purchases. The OPS are utilizing the renewal option in which additional licenses for new equipment can be purchased at the original order price covered under the terms of the agreement.
· Since the cost of the underlying licenses have been amortized during the previous EA Agreements only the Software Assurance portion of the per desktop pricing, along with new license purchases, is payable.
· Management of licenses is streamlined. Individual licenses do not have to be counted. Since all licenses are bundled the number of desktops is used to manage and track licenses.
· Only one order needs to be placed each year. There is a provision for an annual True Up so software can be added to new desktops and laptops and the cost is paid annually.
· Software Assurance is the right to upgrade to the next version. This is part of the Enterprise Agreement. This allows simple migrations of software products to the next version eliminating the need to purchase additional upgraded software editions.
· 30 Training Licenses are provided as part of the Enterprise Agreement. These licenses allow the OPS to use current Microsoft versions for the two training classrooms (Greenbank and Professional Development Centre at Algonquin) at no additional cost.
· 30 Training Vouchers are provided for training on select courses from Microsoft Certified Partners.
· E-Learning provides OPS employees access to individual, on demand Microsoft software courses at no charge. This allows OPS members to learn at their own pace and on their own time.
· 24/7 problem resolution support directly from Microsoft is available for all Microsoft products. In the past OPS paid $150.00 US per call that was placed to the Microsoft Support Desk.
Procurement Recommendation
In April 2011 a Master Enterprise Agreement with Microsoft for Ontario and Ontario Broader Public Section was created. Through RFP OSS-00204088, Compugen Inc. was awarded the Master Agreement for Enterprise and Application Platform Agreement in June 2011.
Funding for the 2012 requirement of $345,637.68, excluding taxes, is available from the 2012 IT Infrastructure Capital Project 906553. Future capital budget forecasts will include this requirement.
Capital Project 906553 $1,000,000
Spent 10,074
Balance 989,926
This Request $ 345,638
Available $ 644,288
The OPS will continue to benefit by using an Enterprise Agreement to obtain the Microsoft Office Suite. A competitive process was used to identify the supplier. Overall the arrangement will enhance the information and technology environment available to OPS members.
(original signed by)
Charles Bordeleau
Chief of Police
