That:

a)     Approval be given to direct award a three-year contract to Phoenix Software Ltd via the framework used previously (Y20011, superseded by Y23065) to provide the Large Account Reseller (LAR) service to support the management of Microsoft products and the Microsoft Enterprise Agreement Subscription for Herefordshire Council and Hoople Ltd; and

b)     Approval be given to procure Microsoft Enterprise Agreement Subscription licences for users in Herefordshire Council and Hoople Ltd for the 2026/27 EAS year, based on the licence numbers determined by the annual review conducted by Phoenix Software Ltd (as our Large Account Reseller) and Hoople Ltd; and

c)     Approval be delegated to the Chief Digital and Information Officer to review and put in place suitable Large Account Reseller services for the council, and to review and procure Microsoft Enterprise Agreement Subscription licences, for future years based on a review of Herefordshire Council and Hoople Ltd licence needs.

1.         To not appoint a LAR and not enter into a 3-year EAS. Not appointing a LAR, and not entering a 3-year EAS, is not recommended. A LAR is required to support large scale Microsoft licensing and ensure both best value and appropriate licencing. Commitment to a 3-year EAS secures access to discounted pricing for the 3-year term and protects against price increases during the period. Herefordshire Council (and Hoople Ltd) can reduce licence numbers at each annual renewal, including to zero. The price fix offered through the LAR and EAS do not commit Herefordshire Council or Hoople Ltd to licence costs beyond the first year.

2.         To procure Microsoft licence through an open competition. Not taking advantage of the Strategic Partnership Arrangements (SPA 24, previously Digital Transformation Arrangements DTA 21) pricing is not recommended. Microsoft licensing is complex and these negotiated rates offer best value. Undertaking a bespoke procurement for Herefordshire Council and Hoople Ltd would be costly and time-consuming and would be very unlikely to result in lower licence costs. The time delay associated with doing this would impact service delivery.

3.         To consider alternative productivity solutions and software, replacing Microsoft products and reducing reliance on Microsoft. Changing from Microsoft is a significant decision. Migrating from well-known applications (Excel, Outlook, PowerPoint, Teams, Word, etc.) would require extensive user training which would take time. Additionally, the council rely on Microsoft solutions as part of our core infrastructure and to support identify management and securing our systems. Migrating from Microsoft in a controlled and managed way would take a number of years and require a complex and costly programme.