Microsoft deal offers schools £46m savings

Education agreement cuts software prices by up to 37 per cent

Microsoft is claiming schools across England could save millions of pounds following its three-year licensing framework deal with the British Educational Communications and Technology Agency (Becta).

The software giant says the deal will allow English schools to save up to £46m over three years if they licence Microsoft software. It could also save schools in Scotland, Wales and Northern Ireland up to £3.5m.

Stephen Uden, education relations manager at Microsoft, said schools will save between 20 and 37 per cent on software costs.

"There has been a huge expansion of government spending (in education) over the past seven years and we expect it to be spending £1bn a year by 2006. Becta was looking to suppliers for a more strategic deal and this is what we have done," he said.

Uden claimed that Microsoft's channel partners will benefit, although initially short-term revenue would appear to decrease.

"Schools will be able to continue buying from partners and we will be encouraging that. This will appeal to forward thinking partners, because although revenue will initially decrease, this is a chance to show that IT can make a difference in schools, and help to grow the market."

Alex Tatham, vice president of global software distribution at Bell Microproducts Europe, said: "We have been waiting for Microsoft to get more involved in education for a long time.

"It has some fantastic products and resellers are desperate to get involved. It is great news for the channel because education is a critical market."

Dave Nicholls, education sales manager at Microsoft's largest Education Large Account Reseller Ramesys, said: "It is in our interests to support both the initiatives of our partners and the interests of our customers, and this gives us the opportunity to do both."