Thursday 5th July, 2012

The Government has renegotiated deals with Microsoft and SAP to enable greater transfer of usage and licencing, which it's estimated will enable savings of around £70m. The deals with the two organisations include the Government being able to sidestep planned licence increases due to come into force next month. In addition, SAP have agreed to improve the current status of the software maintainance fees currently levied.

The Government said that the deals will also benefit councils, police and other bodies which will be able to access the deal via the government procurement service.Cabinet Office minister Francis Maude said: "the old days of signing huge, inflexible IT contracts are gone forever. We have skilled negotiators within govermnent and we are building up this expertise, taking a strategic view.."