New Zealand cancels Microsoft talks

New Zealand cancels Microsoft talks

Summary: The New Zealand State Services Commission has announced that it has been unable to reach an agreement with Microsoft for a new whole-of-government contract

TOPICS: Networking

The New Zealand State Services Commission announced on Tuesday that it had been unable to reach an agreement with Microsoft for a new whole-of-government contract.

"It became apparent during discussions that a formal agreement with Microsoft is no longer appropriate," the commission said in a statement.

The existing agreement begun in 2000 allowed New Zealand's public-sector agencies to purchase Microsoft products on an opt-in basis.

All is not lost for Microsoft, as it has agreed to provide pricing certainty for agencies as a basis for individual agency negotiations, and the State Services Commission for its part has said it will be "supporting agencies to explore how they can maximise their ICT investment and achieve greater value for money".

Earlier in the week, the New Zealand minister for internal affairs announced a move towards shared services and Edwin Bruce of the State Services Commission (SSC) pulled out of giving a keynote speech at the conference, with an SSC spokesperson saying the commission was going through a "transition" so it would be premature for Bruce to comment.

The move runs contrary to similar purchasing initiatives in Australia's Federal Government, which has recently inked a new whole-of-government purchasing deal with Microsoft, led by the Department of Defence.

Topic: Networking


Chris started his journalistic adventure in 2006 as the Editor of Builder AU after originally joining CBS as a programmer. After a Canadian sojourn, he returned in 2011 as the Editor of TechRepublic Australia, and is now the Australian Editor of ZDNet.

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  • NZ, UK, Australia

    One imagines that either the NZ government negotiators finally got, ahem, <i>huevos</i>, or that the NZ government doesn't have money to burn on needless software licence costs, unlike the UK and Australian governments appear to.

    On the surface, whole-of--government deals like this one with Microsoft might appear to 'save the tax-payer money', but those that make such claims never, ever back them up with real TCO comparison numbers.

    if you look at the real numbers, like the <a href="">firms involved in this study</a> did, you will find you can save <b>more</b> money by segmenting your organisation's users and allocating Linux and open source software to those users who aren't Windows-fixated power users. This saves even more money, even with the potentially more complex support arrangement.