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Microsoft CEO Steve Ballmer  (Source: intomobile)
New contract saves DOD licensing fees, gives it access to Windows 8, Sharepoint 2013, and Office 2013

David L. DeVries has a tough job, serving as a deputy chief information officer (CIO) of one of the world's largest and most high tech organizations -- the U.S. Department of Defense (DOD).  Mr. DeVries made a bold move signing a new three-year enterprise licensing deal with Microsoft Corp. (MSFT) to adopt Windows 8 and other cutting edge products.

I. Armed Forces Hop Onboard Windows 8

Given its touch-friendly user interface and consumer focus many power users, analysts, and tech enthusiasts expressed concerns about how the new Microsoft operating system would fare in the enterprise space.  Indeed, even in the consumer sector reports have been mixed regarding the platform's sales health.

While the DOD pickup is unlikely to silence the critics, it is a major score for Microsoft.  While its deployment may take a year or two, the DOD is the largest organization to commit to shifting at least some of its users onto the new Microsoft platform.
 
Windows 8 Surface
The DOD is reloading with Microsoft Windows 8. [Image Source: Microsoft]

The deal also is good for Microsoft's latest and greatest secure networking software, including Sharepoint 2013.  Also included is Microsoft's latest Office 2013 software, which launched in December.

Mr. DeVries comments, "How do we bring about better effectiveness for the warfighter, better improved security on the networks ... while reducing the cost of ownership?  We are the largest corporation out there, comprised of four military services. … No one comes close to our scale, so when we talk about something that produces a standardized way of buying, installing and maintaining [enterprise software], that’s a huge deal."

"There’s a move afoot throughout the department to bring about efficiencies in the [information technology] world.  We took a long, hard look at it … realizing that the Department of Defense relies upon the network and upon information technology to do its business."

The arrangement seems mutually beneficial.  For the DOD they will consolidate multiple smaller licenses from the four military service branches into a single, more stable contract.  The DOD estimates this will save "tens of millions over the course of several years through lower license and software assurance costs."

Microsoft, meanwhile gains a high profile advocate of its embattled Windows 8, should save some overhead on its end as well via consolidation, and safeguards itself against the volatility of multiple smaller contracts.

II. Commanders Praise Microsoft's Focus on Mobility

While some view Microsoft's newfound zeal for mobility to be a massive headache from an information technology perspective, Navy Rear Adm. David G. Simpson, DISA’s vice director and senior procurement executive, argues that for organizations willing to embrace the future it is a massive opportunity.

U.S. Navy
U.S. Navy commanders expressed excitement at Microsoft's new mobile focus, which they view as perfect for their highly mobile service force. [Image Source: Navy.mil]

He comments, "The agreement] recognizes the shift to mobility.  Microsoft is committed to making sure that the technology within the agreement has a mobile-first focus, and we expect to begin to take advantage of Microsoft's mobile offerings as part of our enterprise mobility ecosystem.  Bottom line: lower price for greater value."

The press release did not mention Microsoft's smartphone platform Windows Phone.   However, it is known that the DOD is currently working on mobile device management (MDM) software to support other platforms besides Research in Motion, Ltd.'s (TSE:RIM) fading BlackBerry platform, which comprises most of its current issued handsets.

Of course DOD IT sentiments should not necessarily be viewed as indicative of those of the greater IT community at large.  The U.S. Army infamously committed to the much-criticized Windows Vista, back in 2009, declining to move on to the latest Windows 7 release.

Source: Defense.gov



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RE: Our tax dollars at work
By Zuul on 1/3/2013 3:57:14 PM , Rating: 2
I agree - often people completely do not understand how budgeting works.

I'm just glad they actually bought something they could use. In a few places i've worked, some teams will have extra budget at the end of the year and end up buying things like pickup trucks that they just dump in the middle of some mudhole so they don't lose that part of their budget.

If you have a surplus in your budget, they simply deduct that surplus out of your budget next year. The incentive to save money happens at the transactional level while there's no incentive to save at a budget level. A few companies have been looking at zero-based budgeting. However, that puts significant administrative burden because before you get dollars, you have to justify every dollar spent upfront. In theory it sounds good, in practice, it prevents the company from being more nimble and prolongs the procurement cycle.


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