Data#3 named Defence's new Microsoft reseller

Data#3 named Defence's new Microsoft reseller

Summary: Defence has awarded Data#3 a three-year Microsoft large account reseller contract in a deal which could see the IT services company also servicing other agencies across the Commonwealth.

SHARE:

Defence has awarded Data#3 a three-year Microsoft large account reseller contract in a deal which could see the IT services company also servicing other agencies across the Commonwealth.

(Credit: ZDNet.com.au)

The contract was signed midway through last month, following a tender process in which Defence was looking to cut the price of its Microsoft products.

"Under the contract, Defence has negotiated competitive pricing for the Large Account Reseller Services in support of procurement for Microsoft products," Defence Minister Joel Fitzgibbon said in a statement.

Yet Defence may not be the only agency to benefit from the deal, since it had been negotiating the agreement as part of the government's Coordinated Procurement Contracting Framework, which means that under the Defence agreement, any government agency could be able to acquire Microsoft software licences as a separate contract without having to tender for the work by themselves.

"[The agreement can] be extended to all Australian government agencies, including federal, state and territory, and local government agencies," Fitzgibbon said.

Data#3 managing director John Grant wouldn't put a figure on the contract's worth, but said it would bring in many millions of dollars, especially if other agencies decided to follow Defence in using Data#3 as their Microsoft reseller, which he said fit in with procurement recommendations from the recent Gershon report.

Data#3 had spent three years trying to get traction in the Federal Government as a Microsoft Large Account Reseller, Grant said. "The bid to Defence was a very significant step for us."

The Data#3 bid had put a number of options before Defence, ranging from value-added offerings to those providing pure licensing and licence management, according to Grant. Cost savings for Defence from Data#3 would come from using the price-oriented options, he said.

One of the biggest values, however, would have come from negotiations between Defence and Microsoft, he said. "When you are talking about contracts that are worth millions of dollars, the customer gets to tread the hard line," Grant said.

Other Microsoft Large Account Resellers include Dell, HP, Dimension Data, Corporate Express, Insight Enterprises, Kaz, HP, Computelec, Simply International Group and Comstra.

Topics: Government AU, Government, Legal

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

4 comments
Log in or register to join the discussion
  • Go Ozzie

    Great to see an Australian getting major business from our Govt. Go Data#3!
    anonymous
  • Maybe

    Data#3 has recently taken review of its forcasted sales and pipeline and has taken steps to reduce its workforce across Australia, I believe 25 people were retrenched only last week. It looks like maybe licensing will keep the company floating going forward
    anonymous
  • Simple Simon

    Hi Simon,

    Not sure what you mean, only an Australian LAR can sell MS licenses in Australia. They have choice but to award the contract locally. It is only a matter of which local LAR will own the contract, and the margin they are willing to sell to Defence for.
    anonymous
  • Simple Simon

    "Other Microsoft Large Account Resellers include Dell, HP, Dimension Data, Corporate Express, Insight Enterprises, Kaz, HP, Computelec, Simply International Group and Comstra."
    Which of the above are Australian? I believe Kaz and Computelec are Australian owned but I may be wrong. I'm still glad to see any ozzie business awarded Govt contracts.
    anonymous