Oracle has standardised the terms of its software licensing contracts with the UK government across all departments in a deal designed to save taxpayers £75m over the next three years. Cabinet Office minister Francis Maude claims he "expects more deals with other suppliers to follow".
Previously, different areas of government have negotiated with the vendor separately, resulting in discrete departments enjoying different discounts. The government will now be treated as a single client and will be permitted to re-use licences across departments.
Functions such as HR and payroll will also be shared across divisions, which the government claims will reduce its need to invest in upgrades.
Maude said: "This deal ensures better IT for government and savings for the taxpayer. The days of the government paying different prices for the same goods or services are over. We will no longer sign inflexible contracts that tie the taxpayer into unfavourable terms. We are pleased to have made these savings with Oracle and expect more deals with other suppliers to follow."
The savings expected to be realised through the new-look Oracle deal are estimated to reach £75m between now and 2015.
Oracle chief financial officer Safra Catz said: "The relationship with the UK government has always been very special to Oracle. We are honoured to support its initiatives and to stand together in meeting the changing IT needs of the 21st century."
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