Council’s £4.3m Microsoft computer software bill
A LEADING COUNCILLOR SAYS: “THERE IS NOTHING WE CAN DO ABOUT IT”
COVENTRY council must pay £4.3million to kit out its staff with Microsoft computer software, it has been revealed.
The council’s existing licence cost £823,000 per year when it was purchased through reseller Bytes Software Services Ltd in 2015.
But the contract comes to an end on March 31 next year, and a report says a like-for-like renewal will now set them back £1,073,000 a year – a 30 per cent increase.
Further costs of £365,000 a year are also added onto the agreement for a Skype licence, which is also owned by Microsoft, pushing the total expense to the council to £4.3m for three years.
The report said there are “few alternative competitors” and warned moving from Microsoft “would cause a significant amount of disruption” and a “huge organisational change”.
The dilemma means the council is being “held captive” over the deal, according to Shadow Cabinet Member for Strategic Finance and Resources Cllr Ken Taylor. But Cabinet Member for Strategic Finance and Resources Cllr John Mutton said: “There is nothing that we can do about it.
“Transferring to another supplier would cost just as much and would also interfere with our ability to deal with housing benefit and council tax payments.”
Further pressure is added on the council as it must award the reseller contract by November 30 to avoid being hit by an incoming six per cent Microsoft price increase.
Cllr Taylor added: “It’s totally unacceptable that Microsoft is increasing its licences charges way above the rate of inflation without regard of the cost to the public purse. I know it is difficult to change supplier but we as a council should be looking at alternatives for the future so the we are not held captive like this again.” Cabinet will discuss the report on Tuesday, October 30, where it is recommended to appoint a reseller to renew a threeyear licence contract. It comes just a week after the council’s Medium Term Financial Strategy 2019-22 was approved, which forecast a £23.5m funding gap by 2022 and £11m cuts next year.