Author Description

Software is important to government as it is eseential to deliver most public services and to operate business processes. The NAO's survey of departments and agencies identified specific spending on software licences alone of 100 million. In March and June 2002 the Office of Government Commerce (OGC) announced memoranda of understanding with Microsoft, Lotus/IBM, Sun Microsystems, and Corel. These set out the principles under which software companies will conduct their future business with departments and the pricing and discount arrangements they will offer. In February 2003 another Memoranda was agreed with Oracle to work together on ways of developing standardised IT systems based on common requirements so as to cut back on duplication of effort and costly customisation of systems. OGC estimates the Memoranda with Microsoft alone will save around 100 million over three years. Thirty-one departments out of 66 departments have used the memoranda so far. The NAO examination of these licences involved a detailed survey of how 66 departments puchase and manage their software licences and more detailed case studies of the Department for Education and Skills, the Land Registry, the Ministry of Defence and the Ordnance Survey.