The New Zealand Government has extended its Microsoft Licensing Agreement for another three years.

The original contract signed in 2012 is used by 120 agencies and has achieved cost-savings of $119 million.

The agreement extension will continue to provide cost-savings for agencies over the next three years, according to Tim Occleshaw Government chief technology officer.

The Department of Internal Affairs, as ICT Functional Lead, leads the government's ICT strategy.

Extending the contract with Microsoft shows how the Department of Internal Affairs is continuing to deliver value to government agencies, says Occleshaw.

“This agreement is the result of many agencies working together to help define agency requirements and Microsoft responding with an attractive deal for government,” he says.

“Not only does this agreement provide a great deal for government with price holds and early enrolment discounts, it helps us achieve Government ICT strategy by leveraging our collective investment and resources across the system.

“We have negotiated for government as one customer, using a single procurement process for all agencies, and established a mechanism where agencies can transfer some licences to each other as needs change. This all points to great value,” he says.

“Our vision is to create a single, coherent government ICT ecosystem supporting better public services for New Zealanders.

“The Microsoft Licensing Agreement is one of 14 ICT Common Capabilities we have developed for government agencies that contribute to this vision,” Occleshaw says.