Bytes wins £21m MoD deal through Technology Products

Microsoft licensing specialist hails the win as the most significant piece of business won through the framework

Microsoft specialist Bytes has won a £21m deal with the Ministry of Defence (MoD) through the Technology Products framework, its biggest win through it to date.

The three-year deal will see Bytes supply the MoD with a range of Microsoft licences.

The firm claims the big deal follows a number of other "significant" wins through Technology Products. It added that through the deal, it will maximise the value of the MoD's Microsoft investment as well as "future-proof their consumption of cloud services".

Bytes is heavily invested in Microsoft, and claims that for the vendor's last financial year, which ended last month, it was its leading cloud reseller, with a 35 per cent market share of Azure and 20 per cent share of its Office 365 business within the manged account space.

Chris Swani, Bytes' director of public sector, said the big win with the MoD paves the way for "substantial further investment" in the company's public sector business, which he said is "very healthy".

"Since winning a place on the Technology Products framework two years ago, we have seen some phenomenal new business, which is testament to our expertise at driving cloud services to meet the changing needs of our customers," he said.

A month ago when the UK voted to leave the EU, concerns were raised about how the UK public sector would cope. One analyst said leaving the EU would be a "shot in the head" for the public sector, and others feared business in the space may slow down amid uncertainty.

Swani said that it has been business as usual for Bytes in the public sector since the vote, and added that the devil will be in the detail of how the exit is negotiated.

The first Technology Products framework went live in November 2014 and is due to expire in the same month this year.

The Crown Commercial Service told CRN earlier this year that the second iteration of the framework will be similar, but will focus on quality, not price.