VA cancels component of Microsoft licensing agreement

The Veterans Affairs Department has pulled the plug on a Microsoft licensing agreement in which the agency paid an annual fee to lock in savings on future software upgrades, Nextgov reports.

A Microsoft Software Assurance for Volume Licensing agreement typically requires customers to pay an annual fee of 29 percent for desktop software and server software, according to Nextgov. VA CIO Roger Baker announced the decision to discontinue the deal in a March 30 memo to VA’s IT staff.

About the Author

Connect with the FCW staff on Twitter @FCWnow.

The Fed 100

Read the profiles of all this year's winners.

Featured

  • Then-presidential candidate Donald Trump at a 2016 campaign event. Image: Shutterstock

    'Buy American' order puts procurement in the spotlight

    Some IT contractors are worried that the "buy American" executive order from President Trump could squeeze key innovators out of the market.

  • OMB chief Mick Mulvaney, shown here in as a member of Congress in 2013. (Photo credit Gage Skidmore/Flickr)

    White House taps old policies for new government makeover

    New guidance from OMB advises agencies to use shared services, GWACs and federal schedules for acquisition, and to leverage IT wherever possible in restructuring plans.

  • Shutterstock image (by Everett Historical): aerial of the Pentagon.

    What DOD's next CIO will have to deal with

    It could be months before the Defense Department has a new CIO, and he or she will face a host of organizational and operational challenges from Day One

  • USAF Gen. John Hyten

    General: Cyber Command needs new platform before NSA split

    U.S. Cyber Command should be elevated to a full combatant command as soon as possible, the head of Strategic Command told Congress, but it cannot be separated from the NSA until it has its own cyber platform.

  • Image from Shutterstock.

    DLA goes virtual

    The Defense Logistics Agency is in the midst of an ambitious campaign to eliminate its IT infrastructure and transition to using exclusively shared, hosted and virtual services.

  • Fed 100 logo

    The 2017 Federal 100

    The women and men who make up this year's Fed 100 are proof positive of what one person can make possibile in federal IT. Read on to learn more about each and every winner's accomplishments.

Reader comments

Thu, Apr 5, 2012

It really should be against policy for government agencies to engage in ELAs such as this. They limit open competition, and can preclude agencies from using the best solution for a particular task. Software companies, Microsoft in particular, are adept at "throwing in" small numbers of licenses for free. Once that happens, it makes it very hard for an agency to select another solution that may be better suited for the job or have a lower overall TCO, simply because "we already paid for the licenses!" In my view, agencies should be able to enter into omnibus licensing agreements for products that they already use. Paying annually to keep your prices lower in the future sounds an awful lot like a protection racket ("nice software licenses you have there, be a shame if those prices went way up now wouldn't it?") and policies should be in place to prevent this.

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group