Faced with £40B budget hole, UK public sector commits £9B to Microsoft
The UK public sector expects to spend around £9 billion on Microsoft products and services over five years under its current contract.
Launched last autumn, the Strategic Partnership Arrangement 2024 (SPA24) memorandum of understanding (MoU) took effect in November, allowing public bodies to use the buying power of the whole public sector under nationally negotiated discounts on specific Microsoft products.
At the time, the Crown Commercial Service (CCS) said it would offer "enhanced value across Microsoft's portfolio of products and services." Public bodies using the agreement might include schools, hospitals, councils, and fire services, for example.
In a Parliamentary answer last month, Georgia Gould MP revealed that £1.9 billion had been spent under SPA24 from its launch until the close of the 2024-25 financial year ending April 5, 2025.
"Through SPA24, approximately £1.9 billion has been spent on Microsoft software licences via third-party resellers in the financial year 2024/25. SPA24 enables all eligible UK public sector organizations to access discounted pricing on a range of Microsoft products," she said.
