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Microsoft, NYC reach groundbreaking deal
NEW YORK, -- Microsoft Corp. said New York City has broken the ice with a deal allowing it to pay for software used, rather than buying bundles packaged by the company.
Microsoft normally sells suites of software packaged together, combining, for example, word processing and spreadsheet applications in one sale. The New York Times reported Wednesday that the city had pressured Microsoft into instead allowing it to pay only for applications its workers actually use.
The deal requires the city to categorize workers into three groups based on the different software products they use. Microsoft will then charge the city accordingly, the Times said.
The city expects to save $50 million over the next five years and increase computer options for most workers.
"We took advantage of the competitive moment," deputy mayor for operations Stephen Goldsmith said.
That competitive moment was provided by Google and other Microsoft rivals. Google has a $50 per worker per year billing arrangement with the city of Los Angeles, which allows L.A. to pay only for applications each worker uses.
Microsoft vice president of government contracts Gail Thomas-Flynn said, "It's really an opportunity to work with the city in a new way in terms of innovation."
As far as the new arrangement goes, "New York is setting the pace," she said.
NEW YORK, -- Microsoft Corp. said New York City has broken the ice with a deal allowing it to pay for software used, rather than buying bundles packaged by the company.
Microsoft normally sells suites of software packaged together, combining, for example, word processing and spreadsheet applications in one sale. The New York Times reported Wednesday that the city had pressured Microsoft into instead allowing it to pay only for applications its workers actually use.
The deal requires the city to categorize workers into three groups based on the different software products they use. Microsoft will then charge the city accordingly, the Times said.
The city expects to save $50 million over the next five years and increase computer options for most workers.
"We took advantage of the competitive moment," deputy mayor for operations Stephen Goldsmith said.
That competitive moment was provided by Google and other Microsoft rivals. Google has a $50 per worker per year billing arrangement with the city of Los Angeles, which allows L.A. to pay only for applications each worker uses.
Microsoft vice president of government contracts Gail Thomas-Flynn said, "It's really an opportunity to work with the city in a new way in terms of innovation."
As far as the new arrangement goes, "New York is setting the pace," she said.
