UK Government in talks with Microsoft

Talks are underway on a huge Microsoft licensing deal to cover local and central government and police forces in the UK.

The National Enterprise Agreement would be similar to the deal signed with the NHS, and is a response to fears about the cost of complying with Microsoft's much criticised licence reforms.

The Society of IT Managers (Socitm), the Association of Chief Police Officers and the Office of Government Commerce (OGC) are now waiting for a proposal from the software giant prior to more detailed negotiations.

"We are in discussion with Microsoft and the OGC to come up with a similar arrangement to the NHS, covering local and central government," said Bob Griffith, national secretary of Socitm. "It's at a fairly early stage at the moment, but we hope something will come out of it in the next six to eight weeks. We are looking for the best deal for our members."

Collective buying agreements already exist, but Socitm is keen to make sure that any agreement takes into account changes to technology and the increasing use of IT by the public sector.

The NHS licensing deal gives it access to the latest versions of Microsoft software, and replaces 35,000 separate deals. The NHS estimates it will save £50m over three years.

The deal now being negotiated would cover products including Office and Windows desktop upgrades, and a Core Client Access Licence which would include access licences for Windows, Exchange, Systems Management Software and Share Point Portal Server.

Microsoft said it is in discussion with some government departments over licensing, but would not comment further.