Microsoft And Mayor Bloomberg Cook Up Juicy Software Deal

No less than Mayor Bloomberg declared “This is about making the city government work better” during a Wednesday press con at City Hall. The event sealed the $100 million software deal that will provide a whole range of MS Office Tools for the Big Apple’s 100,000 city employees. Microsoft’s head honcho Steve Balmer and Mayor Bloomberg had good reason to feel exuberant since the five-year deal will consolidate the many individual contracts made by NYC departments, eventually saving the Big Apple $50 million.

The savings bit comes from the data storage of 30,000 city employees on Microsoft servers, thus sparing Mayor Bloomberg’s administration further investment on hardware.

This appears to be a double win for Microsoft, who are facing stiff competition from the likes of Google and IBM on the office software front. Though the austerity and cost-saving factor in the NYC-Microsoft deal is being well publicized, many believe that Google’s own software remains a bigger steal at just $50 a year. The clincher is NYC isn’t budging on this new partnership and once it gets underway city workers shall fall under three categories (or buckets) according to the apps they use.

The user categories are occasional, basic, and power. The first two cover city employees who work outside offices and have little use for office apps beyond sending emails. Opposite them are the power users who need access to both desktop and cloud apps. The difference further emphasizes the discounted package Microsoft has just sold New York. This new kind of deal is expected to shape and become a reference point for any future transactions involving Microsoft licenses.

Via: TechCrunch