State Services Commission tells govt agencies to dump Microsoft

Details of the State Services Commission’s 2009 pan-government deal with Microsoft remain confidential. But an internal SSC presentation has plenty of harsh words for the software giant. It advises government agencies to ditch two Microsoft products altogether, and buy others before the previous agreement expires.

Since 2000, every three years the State Services Commission has led negotiations with Microsoft on a software agreement that covers ever government agency, including state-owned enterprises such as TVNZ and Kordia. Schools, which fall under a separate mega-deal, are the only excluded government entity.

While 2000, 2003 and 2006 deals went smoothly, the 2009 talks resulted in a much less comprehensive agreement, with Microsoft simply guaranteeing on baseline pricing, which government agencies could use to negotiate individually with the company.

The State Services Commission presentation, dated June 2009, details how government agencies can “manage” the amount of money they spend with Microsoft.

NBR understands it is being shown to all government agencies to school them in negotiation tactics as a series of existing agency 2006 agreements expire between now and October.

The worm has definitely turned with the commission - formerly accused of being Microsoft-friendly - now taking an aggressive stance.

“Not all Microsoft expenditure represents good value for money,” says the presentation.

It goes on to recommend that government agencies buy Office and Windows software before the existing Microsoft-pan government triennial expires - implying, although price terms remain secret, that the US software giant increased its pricing with the 2009 deal.

Sweat it out; stick with Windows XP
The commission says there is “low risk” in ceasing “Software Assurance” (Microsoft’s volume licensing plan), especially given the likelihood that many government agencies will “sweat” their hardware over the next three to five years (that is, hang on to old PCs for as long as possible).

There is “no imperative for agencies to move to Vista” says the commission, referring to Microsoft’s current, three-year-old version of Windows.

Ditch Microsoft Project, Visio
The commission also recommends that agencies ditch two other Microsoft programmes altogether: Project and Visio (Microsoft’s project management and diagramming/display software).

“Visio and Projects are products that attract premium pricing but are underutilised,” says the commission.

“Alternatives provide fit-for-purpose functionality”.

Don Christie, the president of the New Zealand Open Source Society and the person responsible for procuring the State Services Commission presentation, was quick to suggest alternatives to NBR.

“There are quite a few project management systems out there,” said Mr Christie, pointing to a Wikipedia round-up.

“We are really enjoying the web based system RedMine right now at work.” Mr Christie heads a consultancy that specialises in open source software, which is often free or low cost.

“As for Visio knock offs there are also a few. We use something called
Dia at work”.

Microsoft hits back
Although it supports a number of open source initiatives itself, to a degree, Microsoft warns that open source software often involves extra costs in areas such as consultancy, services and training.

Earlier this year on his blog, Microsoft New Zealand national technology officer Brett Roberts let rip at IT department geeks who have an ideological objection to his company, and waste time and money fooling around with open source alternatives.

And the security of sticking with full-featured corporate software has seen some, like The University of Auckland, stick with Microsoft solutions for staff, fearing open source alternatives would not be as capable of fulfilling the record keeping requirements of the Public Records Act - the first provisions of which come into force next year.

“Time to pause and consider direction”
Mr Christie has previous claimed to NBR that government agencies are being “shaken down” by Microsoft because of their ignorance of alternatives after the all-embracing series of triennial deals between 2000 and today.

Although at least two slides detailing Microsoft’s 2009 offer are deleted, under the Official Information Act, in the version of the presentation obtained by Mr Christie, it does seem the commission is now being more proactive.

It advises government agencies to band together across sectors for more negotiating power; to seek legal advice; to closely analyse Microsoft pricing; and to actively explore Microsoft alternatives.

It says it is “Time to pause and consider direction ... is Microsoft going where you want to go?”

The new Microsoft agreement could be “a tipping point in government ICT spending” the commission says. And with the cabinet razor gang going over a number of big state IT projects line-by-line, there is certainly incentive to explorer every alternative.

Save $2000 a desktop
The State Services Commission presentation says the biggest saving an agency can make - an estimated $2000 – is by sweating existing PCs.

The advice ties with analysis given by independent consultant Lawrence Millar at the recent TelCon10 conference. Mr Miller said the government could redirect much of its current $1.9 billion in IT expenditure from “keeping the lights on” to more productive areas if it moved toward cloud computing, which today is driven by open source products championed by the likes of Google (although Microsoft has its own cloud computing platform on the way next year, as well as a browser-based version of Office).

Mr Millar said it cost $400 a year to fully license a PC running conventional software, but only $50 a year if the computer was part of a cloud computing set-up.

Read the commission's presentation (minus the deleted Microsoft 2009 offer slides) on the NZ Open Source Society website.

Comments

Time Wasters

So a Mr Miller thinks the government should use roll your own software. Given how inefficient most government departments are already using Open Source software and cloud computing is really going to make them efficient, Not.

Lets host all government confidential information on a Google server somewhere in the US. Gee, that sounds like a really dumb idea. How many times have Google Apps and Gmail been down in the last year. Maybe civil servants could take up knitting while they wait for it to come back on line.

[President Obama's recently appointed CIO is an advocate of govt agencies adopting cloud computing whenever possible. Amazon's cloud platform already has some traction here. Next year, it will be joined by Microsoft's Azure cloud platform. Oracle and Salesforce are among the many enterprise software companies hosting some, or all, of their software online. In short, there are some open source apps in the cloud, and a lot of commercial ones, but the model of cloud computing has become totally mainstream. CK]

Upgrading to Vista

Upgrading to Vista is only going to force hardware upgrades, technical support with driver issues, added training costs and for those that manage to run on the base hardware frustration in system performance. I certainly wouldn't be recommending an upgrade unless they had a compelling reason to do so. Unfortunately Windows 7 whilst it does have some enhanced useability and support benefits suffers from the same albeit slightly better performance of Vista. Throwing more hardware at a problem does not cut it when efficient programing could have overcome it. I guess Microsoft are heading in the right direction with a programing target of getting to idle I.e stoping continual CPU processing through better software design. Summary. Stay with XP until Windows 7 provides compelling reasons to upgrade.

@CK - the question isn't

@CK - the question isn't about the viability/acceptability of Cloud computing - it's about where the data is stored.

[Certainly security of storing data in the cloud is an issue. In a previous NBR story, NZ Post said it did not want to go further with cloud computing, at this point, because of security and human-error concertns about storing data in the cloud.

The sovereignty and legal issues involved with storing data in the cloud (or, more specifically, a data centre in the US or elsewhere off shore) are also a valid concern. New Zealand's privacy laws don't extend beyond its geographical limits, and obviously it's going to play into legislation like the Public Records Act. - CK]

should work .. but doesnt

ring ring .. yes .. ministry of dumbo here..yes and why have you called the microsoft helpdesk today... um .. we have an issue between the application layer and thingy bit that goes whoop whoop ( fred in records downloaded it from the web and it said it was open source and compatable) and now we have red lights flashing and the computer just doesnt do a thing... help ..

well madam have you tried the Open source help desk .its armed by mercinaries... on mondays it is open from 2-3 in namibia , tuesdays in Rio from 4-5.. you get the picture..please dont call us again at Microsoft - you dont have a service agreement and support costs.. tat tah

but but .. are you there??

doesn't work, but should

Hello, Ministry of 'can't afford a service agreement' here (and why would we send the money overseas anyway)
we can't get MS product X to work with MS product Y.
Do you have a support agreement
No
Click

Post to open source community
Q: Ministry of 'open source shared community cost effective solutions' here
we are trying to get A to work with B,
has anyone else had this problem?

A1: no, tell us more, how can we help, here.s a suggestion, try this ...

A2: yup, we solved it like this ...

-=-=-=-=-=-=-=-=-
which do you think is a more real world scenario?

Fred and Practical

@Fred: You're conflating the natural evolution toward consolidation of computing resources (clouds/servers) with where these servers are geographically located. Local government and companies can have their own cloud, in New Zealand.

The browser is the client, and the huge efforts going into HTML5's offline capabilities, and into accelerating Firefox 3.5 and Google Chrome/Apple Safari show how most software can be made for the web.

@practical: Proprietary or free/open source software can be sold without a support contract. If you want a vendor to stand behind it then there are hundreds of commercial organisations only too willing to help. There tends to be communities of free support too but that's not true of all open software licenses.

Open Source Support - common ownership

If Govt IT (or any large organisation) use the open source support community they are by definition also be helping solve (outsiders) problems. We pay for the provision of that support.

Open source community support tends to involve the use of programming skills - a completely different skill set than typical govt IT support personnel.

I don't see how (in the total picture) programmers working in the open source community (with a wide variation of experience levels) can provide comprehensive products at a cost that is competitive with paid employees doing the job in a managed environment for a corporation (Microsoft / Oracle etc). I believe most open source support is provided by people who should be earning the wages they are being paid at the time.

As/if open source use rises the impact of the provision of 'free' time for support will be increasingly noticed by employers.

It is a community based opon communal ownership (there is a name for that)

Paul

@Paul,

Open source software may be supported by mailing lists, wikis, etc., but there is commercial support from IBM, Oracle, Unisys, and hundreds of smaller vendors.

Open source support doesn't involve "programming" any more than proprietary software. Just take a popular open source project like Firefox and their http://support.mozilla.com/ site that has user friendly support without programming -- it's all point and click. Similarly the install of Ubuntu Linux is more user friendly than that of Windows XP (although Windows Vista/7 is considerably better).
Some proprietary software is difficult and arcane and litters the windows registry with obscure configurations, but making generalisations about open source or proprietary requiring "programming" is simply untrue.

Then you go onto say that open source can't compete with managed and paid employees at corporations. Firefox earns tens of millions through advertising referral to fund employees, and software as a service is a proven business model that employs millions of people internationally. Again, there is no generalisation to be made about open source being unorganised and unpaid, as you imply.

Regarding your last line... many open source projects require contributor agreements that assign copyright to a central organisation (Eg. OpenOffice.org contributions required signing rights over to Sun). Communal ownership in a copyright sense isn't part of open source, but instead it's about communal use.

The reasons for this can be about market commoditisation, software as a service, advertising, hardware by-products or simply by-products of getting the job done.

Your ideas about software need to become more sophisticated because they sound like the kind of things that ignorant people said ten years ago. They're not particularly persuasive, and you could be missing out on some good software and business opportunities.

Open Source does not have to mean google.

Open Source does not have to mean google or cloud computing. The cloud part was only a small part of the article.

NBR has been erroniously attributing problems with google to open source programs an a whole.

Open Source does not have to mean google.

Open Source does not have to mean google or cloud computing. The cloud part was only a small part of the article.

NBR has been erroniously attributing problems with google to open source programs an a whole.

For instance, cloud computing would make it difficult to comply with the audit-trail requirements in the Public Records Act ... but so does storing the information in proprietary formats.

Putting the monopoly supplier on the spot is a good idea anyway. Lets have more of this.

Commercial Open Source Software

Ther are a raft of well proven commercial open source software offerings being used and supported in Government already. Open Source does not mean community support only - there are plenty of cases where fully supported versions of software are available should the invidual departments want it eg Red Hat, Ingres.

Major suppliers like IBM and HP offer a range of Open Source related products and service as noted above. The SSC is telling the departments not to take support contracts (ie Software Assurance) for Microsoft desktop products in any case, so I'm not sure that I see the argument in the desktop space.

There are also many local consulting organsiations that specialise in Open Source work eg Solnet, Catalyst and do it very cost effectively with high levels of skill. All the major worlwide consulting companies like Accenture are establising Open Source practises, as well, because they can see the opportunity.

Furthermore, China, Korea, Japan and the EC are moving to Open Source in a major way - that says half the world is movin in the Open Source direction. Why not the NZ Government?

“Alternatives provide fit-for-purpose functionality”.

Micro$oft has arrogantly plunged way ahead of many of it's customers real needs and these harsh economic times are a wonderful opportunity for the marketplace to take the plunge and start getting comfortable outside the Micro$oft $ecurity blanket that seeks to smother and stifle competitioin. Myabe we will finally see a real 'burst' of takeup of alternatives with that pushing the expansion in support services and trades education in support personnel. Sounds like good job creation rather than paying over inflated training and thus support for Micro$oft's over bloated functions. Besides, Micro$oft et al is in cahoots with US govt regarding spy features in it's software for the sole purpose of US trade and security benefit/protection, I believe.

Headline and Presentation dont match

Chris,

After reading your story I then went and read the SSC presentation and your headline was IMHO inflamed.....dont select Project / Visio and perhaps move off SA to sweat assets is hardly dumping Microsoft. But then you have to sell newspapers.

Also how relevant is the SSC these days.....when are they going totally open source? I wish they would and pilot for the rest of NZ.

Leaving desktop SA a no-brainer

I used to work as IT Advisor for a smaller govt agency and was very familiar with the G2003 and G2006 negotiations.

I felt that the agreements worked well especially for smaller agencies under a Select agreement but perhaps less flexible for larger agencies under an Enterprise agreement. Negotiating on an individual agenciy basis will put things back to square one for a lot of smaller (<200 seat) agencies.

Smaller agencies are more financially constrained so perhaps open souce may be an option for them, although a balance needs to be maintained between cost of open source alternatives, internal IT support required to maintain and external support required. I have used open source solutions with differing experiences from good to poor. Not sure about using them for mission critical apps yet.

The SSC is recommending agencies "sweat" desktop assets and leave desktop SA behind. This really is a no-brainer and something I was planning to do while in govt and will do at my current organisation with Windows 7 on the horizon. Managing SA is the key here as not all products need to have SA. Also Visio and Project are premium products and attract premium pricing and they are underutilised so good that open source alternatives are available.

In the NGO sector, Microsoft provides significant discount on RRP for organisations with charitable status and Techsoup also offers another low cost alternative for access to microsoft premium products. However, key determinants on how open source will fit with an organisation will depend on its technology strategy.

There are governance issues around cloud computing and while it may be good for some apps (e.g. Gmail) I suspect integration between cloud and non-cloud apps or federation between cloud providers is still an issue. Private clouds may be appropriate, expecially in a commercial or goverment context where agencies or organisations with similar interests can build a cloud to operate within certain governance however miss the scalability of larger cloud offerings.

Apologies for the lengthof this post. My thougfhts on this interesting topic.

Open source alternatives for Visio and Project

Visio - try Gliffy as an open source alternative
Project - Try Open Workbench as an open source alternative

Open source alternatives for Visio and Project

Open Workbench is an open source alternative to MS Project and is quite good although found myself dran back to MS Project, perhaps because of my familiarity with MS products more than anything else.

Also try Gliffy as an open source alternative to Visio. Have not used it but looks good with arange of templates and objects comparable to visio.

John

@John "In the NGO sector, Microsoft provides significant discount on RRP for organisations with charitable status"

Significant discount? Constrast this to a recent story on Microsoft pricing for charities

"The Redmond giant is pressing ahead with new global software licensing agreements, some imposing a whopping 500% price increase, to stamp-out what it initially claimed were illegal uses of its discounted offerings by not-for-profit agencies."

source: http://tinyurl.com/r9f8nz

Department of Computing - Chief Engineer

Hi,

You have all missed the point the State Service Commission has failed to negotiate a government wide simplistic contract with Microsoft. That is ridiculous they did not deliver, and it has huge cost and time ramifications to all government departments.

Grasp the nettle firmly and give the Public servants the tools to do their job quickly and efficiently, that means “Planned Maintenance” on all governmental computing resources. Public servants not having to compromise, you do not give a surgeon a plastic knife when a scalpel is required. Having dialup in the 21st century is not an option for 1st world countries.

For huge productivity gains use of MS Project with "MS Project Server" gives a Department wide view of all projects, in a single repository - which can and should be turned into a single "governmental view" provided daily to PM’s office. . ROI, productivity and communication gains are enormous.

The same with MS Visio - where is the single governmental view of the all governmental computing resources?

To provide world class governmental computing resources, there is required world class governance to all government departments … the State Service is failing dismally therefore a “Department of Computing” should be setup, with numerous Chief Engineers (Computing) being mandatory to sit on all Departmental Steering Committees of Computing expenditure.

To provide the best use of governmental computing resources for the people and companies of New Zealand.

Why should we participate in the great american public bath houses (church of google, twitty etc)

Local data for local entities. :-)

Kind regards

Andrew

LOL all this debate sounds

LOL all this debate sounds so much like 1980 when the IT Establishment was dominated by IBM Mainframe technology and could not see the PC revolution and distributed processing steamroller coming. They loath the very idea that the rest of us might just be able to find more cost effective IT solutions to our needs than they can. Worse, they are often lazy, and not prepared to learn about better solutions than the ones the big corporations package up for them at grossly inflated prices.

Nothing changes in human nature, and monopolies bring out the worst in human behaviour. Yesterday IBM (and look what happened to them), tomorrow Microsoft.

not wasted time

Perhaps Fred you would be better confirming where Google hosts it severs before you tar them with the American Eagle. I think you will find out that there are more Google servers outside the US than within.

As for outages; yes Google have had several, but for every Google outage that you heard about you can be reasonable assured that there are 100,000 more in IT departments all over the world that you never hear about that cause more disruption to business and government than all Google's outages combined.

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