Microsoft, Dell Ink $500M Deal with Air ForceBy Peter Galli | Posted 2004-11-19 Email Print
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The multiyear deal, a consolidation of multiple support and software agreements with the Air Force, will see Microsoft provide core server software, maintenance and upgrade support, while Dell will supply more than 525,000 Microsoft desktop Windows and OMicrosoft Corp. and Dell Inc. on Friday will announce a significant consolidation of multiple support and software license agreements with the U.S. Air Force into a single enterprise agreement worth as much as $500 million over six years.
This multiyear deal will see Microsoft provide core server software, maintenance and upgrade support, while Dell will supply more than 525,000 Microsoft desktop Windows and Office software licenses.
The deal, which Microsoft and Dell officials say is one of the world's largest single enterprise-level implementations in the world, forms part of the One Air Force, One Network initiative and is designed to simplify the acquisition process while meeting demands for stringent enterprisewide cyber-security requirements, timely distribution of software updates and enterprise configuration management.
Core server software supported under the agreement includes Microsoft Windows Server 2003, Microsoft Exchange Server, Microsoft Systems Management Server, Microsoft SQL Server and Microsoft Office SharePoint Portal Server.
Through Software Assurance, Air Force personnel will also get desktop licenses for use at work and at home, through the Home Use Program which gives the staff the option of buying a licensed copy of select Office desktop applications for use on a single home computer at a nominal cost, Kolcun said.
For its part, Dell will supply the Air Force with more than 525,000 Microsoft desktop Windows and Office software licenses. This software products initiative consolidates 38 software license agreements previously established by the Air Force and will allow it to implement standard configurations of software that will be mandated for use across global Air Force operations.
Troy West, vice president of Dell Federal Systems, said in a prepared statement that the agreement builds on Dell's long-standing relationship with the Air Force. "As an organization with facilities worldwide, it is important for the Air Force to efficiently and affordably procure technology when and where it needs it. This agreement enables it to accomplish that goal," he said.
Next Page: Other DOD organizations supported.
The agreements will also support other Department of Defense organizations, including the Office of the Secretary of Defense, the Joint Chiefs of Staff and several Joint Combatant Commands for which the Air Force has executive responsibility.
Microsoft's Kolcun said that the consolidation of software and hardware product purchases across its enterprise will allow the Air Force to enhance IT operations globally through better management, policies and planning.
"It will be able to add integrated security and configuration management processes as well as baseline requirements that will have security and software feature settings specifically configured. The partnership will help the Air Force meet its goal of standardizing software capabilities to support core Air Force operations," he said.
Another core element of the deal is security, with both the Air Force and Microsoft committing to work together to solve security concerns across the Air Force's global enterprise, Kolcun said. The Air Force will also now drive new methods of testing and upgrading software and increase overall sharing of best practices.
In addition, the services program will standardize desktop and server software configurations and streamline configuration management capability. "We at Microsoft will learn how to continually improve our technology as it is applied across a massive and truly global enterprise like the U.S. Air Force," Kolcun said.
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