Decision

Microsoft Licence Procurement

Decision Maker: Cabinet

Outcome: For Determination

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: March 17, 2026

Purpose: To procure core Microsoft User and Infrastructure licences

Content: RESOLVED that   i.      the procurement of a new Microsoft Enterprise Agreement is approved, including M365 licences via direct award through the KCS Procurement Services: Y23065 –Software Products and Associated Services framework.   ii.     Authority is delegated to contract award to support the services outlined in 3.1. of the report, to the Executive Director: Communities, in consultation with the Cabinet Member for Leisure, Culture, Public Protection.

Reasons for the decision: i.      Microsoft licensing underpins the council’s core operational systems, including productivity tools, security tooling, and communication platforms. Any interruption would compromise service delivery and place the council at legal and operational risk.   ii.     The current Microsoft Enterprise Agreements end on 30th June 2026. Microsoft licenses are available for purchase through approved licensing partners only, rather than directly from Microsoft. Switching Microsoft Licensing Partners yields minimal savings, since government frameworks set the pricing for public sector organisations. The Y23065 framework was procured under PCR 2015 and enables compliant direct award under Regulation 33(8)(a).   iii.    Microsoft sets national pricing, leaving resellers unable to negotiate discount levels. Therefore, further competition would not result in improved pricing.

Alternative options considered: i.      Alternative licensing platforms (including Google Workspace and other productivity suites) were reviewed but did not meet organisational requirements in terms of feature set, integration, device management capability, or security.   ii.     Competing frameworks (e.g., Crown Commercial Services) have also been reviewed; however, they do not align with timescales and would not deliver any commercial advantage due to fixed Microsoft pricing.

Supporting Documents

Cabinet Microsoft EA agreement procurement report.pdf

Related Meeting

Cabinet - Tuesday, 17 March 2026 6.30 pm on March 17, 2026