Council cuts licensing bill by 26 per cent following review

Plymouth City Council saves £494,000 through Managed Licensed Services and Software Asset Management optimisation solutions

Following a review of its Microsoft licensing strategy, Plymouth City Council has achieved cost savings of 26 per cent, or £494,000, on its licensing outlay over a three-year period.

The Council brought in help from value added reseller Trustmarque Solutions, which regularly works with local authorities to reduce spending on licences.

Using Trustmarque's commercial benchmarking and negotiation service, Plymouth City Council was able to review its current Microsoft software usage and determine optimal future licensing options.

"We help organisations achieve fair and balanced vendor negotiations through a detailed analysis and review of their software estate, resulting in a tangible return on investment," said David Marriot-Lodge, services and solutions director at Trustmarque.

"One council we worked with achieved a saving of 66 per cent, equating to £1m over three years," he added.

Commercial benchmarking enables firms to detail the benefits and risks for each licensing option, and provides advice regarding a negotiation strategy. This can help companies work out whether they are on the right licensing agreement, and if licences can be re-harvested.

"This has helped us make the most out of a fixed budget," said Tom Unwin, technical architect, Plymouth City Council.

"The benchmarking service has paved the way for an agreement with Microsoft that exactly met our requirements," he added.

"We had been buying software through a Microsoft Select Agreement and we have now also signed up an Enterprise Subscription Agreement."

Trustmarque also insists that badly negotiated software licensing deals are a problem, and that companies need to ensure they have an optimal strategy in place.

"Licensing is complicated, but firms are becoming aware that they might be able to cut down on costs," said Simon Rutt, Trustmarque's marketing and partner alliance director.

"Organisations must demand this kind of service from their vendors, as there are certainly savings to be made," he added.