Gravesham Borough Council in the United Kingdom (U.K.) faced a challenge to ensure the best use of its software assets given the government drive for efficiency. The authority brought in Civica Services to review its Microsoft infrastructure for compliance. It also wanted advice on using the new Public Sector Agreement—PSA09—for cost-effective software licensing devised by the government and Microsoft. Under this licensing model, Gravesham has saved £46,700 (U.S.$74,900), equivalent to 80 per cent of its annual software spend. It is making a 74 per cent return on investment (ROI) from the Microsoft Software Asset Management review—far more than its original target. The council now has an achievable three-year roadmap for IT development. This includes a refresh of all desktop software and a virtualised infrastructure to enhance management and cut operational overheads.
Situation
Gravesham Borough Council in the United Kingdom (U.K.) provides public services to 98,000 people in north-west Kent, England. The local authority needs to ensure the best possible use of its software assets, especially with pressures from central government on all councils to demonstrate savings in the use of taxpayers’ money.
The council has a reputation for innovation in information and communications technology, having recently become the first council to launch a phone application for residents to report graffiti, antisocial behaviour, and housing repairs. Yet innovation is only possible if software assets are well managed throughout their life cycles. Darren Everden, Service Manager for IT, Gravesham Borough Council, says: “Software asset management should not be viewed as an optional administrative process, but as a key mechanism for transforming software from a cost centre to a strategic asset.”
In the second quarter of 2009, Gravesham was coming to the end of a three-year Microsoft Services Enterprise Agreement for low-cost volume licensing of software. The local authority was aware of the new Microsoft Public Sector Agreement—PSA09—devised between the government and Microsoft as a new software purchasing model for the U.K. public sector.
Gravesham, with 450 users of the Microsoft Office suite of products, wanted to achieve a return on investment (ROI) over three years of the cost of any software licensing review. The council was already working on procurement with Civica Services as a reseller.
Solution
Civica Services initially recommended a Microsoft Software Asset Management program licence review. This would help Gravesham plan an effective three-year strategy by reviewing its software assets and gaining compliance certification. But Gravesham wanted to go a step further. Mark Flynn, Services Director, Civica Services, says: “The council engaged our managed services arm. It wanted to significantly reduce its software spend by effectively managing all the council’s software assets.”
By working with Civica Services, Gravesham identified the subscription software model under PSA09 as the most appropriate licensing model for the council, given the current budget cuts in local government expenditure. PSA09 had introduced changes to the pricing model for the Enterprise Agreement, making it more cost effective for many public sector organisations to choose subscription licensing rather than perpetual licensing.
Flynn says: “Subscription licensing brings immediate savings, but it also sustains that advantage. It guarantees that you can change the number of licences you require—both up and down—with a greater degree of flexibility than with perpetual licensing. At each anniversary of the subscription agreement, you can choose whether to scale up or down without restriction—and can even cancel the subscription enrolment altogether.”
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Civica Services reviewed our Microsoft infrastructure within very tight timescales, and, as a result, we were able to enter into the new Microsoft PSA09 licensing agreement in the most cost-effective way. |
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Darren Everden
Service Manager for IT
Gravesham Borough Council |
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Everden adds: “Civica Services reviewed our Microsoft infrastructure within very tight timescales, and, as a result, we were able to enter into the new Microsoft PSA09 licensing agreement in the most cost-effective way. As a by-product for the Software Asset Management review, we have also gained compliance certification in line with Information Technology Infrastructure Library (ITIL) guidelines—a globally recognised set of best practices for IT management.”
Benefits
Gravesham Borough Council achieved first-year savings of £46,700 (U.S.$74,900)—equivalent to 80 per cent of its annual software budget—through the Civica Services Software Asset Management review. It was followed by adoption of subscription licensing under PSA09 and supported by an in-depth Civica Services–developed Software Asset Management service, tailored to the council’s needs. The savings represent a 74 per cent ROI, which is significantly more than the original estimate. Gravesham now has a clear roadmap of how to develop its IT over the next three years, which includes a desktop refresh and virtualisation. Everden says: “Civica Services has shown Gravesham Borough Council how to optimise asset management processes to reduce software spend.”
Gravesham Meets Government Targets and Ensures Compliance
In the current economic climate, local authorities are all required to meet stringent government efficiency targets of up to 30 per cent. Gravesham is no exception. Everden says: “Our £46,700 savings are a major contribution to meeting government targets, but we have also achieved a far more compliant and resilient infrastructure. It now meets the Government Connect Secure Extranet (GCSx) Code of Connection compliance requirements.”
Council Makes Savings on Applications and Server Licences
Around 34 per cent of the savings made by Gravesham Borough Council were on applications. The review showed that multiple versions of Microsoft Office were installed on some machines at the council, so Microsoft gave Gravesham a timeframe to replace all installations with Microsoft Office Professional. Flynn says: “Civica Services also provided a list of licensed but unused software installations and recommended re-harvesting these licences.”
In addition, Gravesham has cut costs by 27 per cent through using the most cost-efficient licensing model for Windows Server and Microsoft SQL Server. Further savings were made through a review that discovered a surplus Windows Server Enterprise licence.
PSA09 Agreement Improves Efficiency
The Software Asset Management review helped prevent any shortfalls in Microsoft Office licences by advising the correct number of devices to licence and how best to apply PSA09—making up around 25 per cent of the total savings. Under the software optimisation model, Civica Services analysed how much staff time was spent internally to manage software assets and realised £8,000 in savings.
Software Asset Management Review Helps Support IT Roadmap
The subscription licensing model gives Gravesham the flexibility to manage its technology roadmap in the most cost-effective way. Over the next three years, Everden and his colleagues are planning a desktop refresh and virtualization, among other initiatives. He adds: “The subscription licensing model with Microsoft under PSA09 means we can avoid the risk of over provisioning and buying more than we need.”
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Our £46,700 savings are a major contribution to meeting government targets, but we have also achieved a far more compliant and resilient infrastructure. |
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Name
Service Manager for IT
Gravesham Borough Council |
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Microsoft Services
Microsoft Services helps customers and partners discover and implement high-value Microsoft solutions that generate rapid, meaningful, and measurable results. As the consulting, technical support, and customer service arm of the world’s leading software company, Microsoft Services enables the successful adoption, deployment, and use of Microsoft solutions and technologies for all customers, from the individual to the enterprise.
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For further information about Microsoft products and services, please visit:
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www.gravesham.gov.uk
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