Treasury's Microsoft deal to contribute to 'fiscal stability'

Johannesburg – A deal between National Treasury and Microsoft could see government making “significant savings” to the national fiscus.

Treasury issued a statement on Sunday, indicating that the contract between the two parties as well as the State Information Technology Agency (Sita) is for government-wide software licences and services.  The Microsoft product and services will be used within all spheres of government.

This is part of an effort by the ministry of finance, Treasury and the Office of the Chief Procurement Officer (OCPO) to implement “greater efficiencies” in government procurement.

“The OCPO has been in negotiations with the Top 100 suppliers to government, with a view to effect savings and improve delivery,” stated Treasury. “Microsoft is one of the first vendors to actively collaborate with the government of South Africa in finding ways of optimising government ICT spend and maximise the return on its investment.”

The savings from this partnership will contribute towards “fiscal stability” stated Treasury.

“We are proud to support the efforts of the minister of finance and the Treasury to restore the health of South Africa’s fiscus and contribute to a positive credit rating,” said Niral Patel, head of public sector for Microsoft South Africa.

In a joint statement, Chief Procurement Officer (CPO) Kenneth Brown and Dr Setumo Mohapi, CEO of SITA, said the partnership would provide “innovative and unconventional solutions” for government’s “complex and diverse” requirements.

Among the benefits of the agreement include special pricing on Microsoft licences and services. Smaller government entities can now have full access to Microsoft products and services. Government will also have access to Microsoft’s “top technical skills”, at reduced rates. Organs of state can also make use of hybrid or cloud licencing solutions.