Issue details

20/00057 - Microsoft 365 licensing agreement (s) contract award



KCC entered into an Enterprise Licensing Agreement with Microsoft via its reseller in June 2018 for three years. Since the contract was awarded Microsoft have made available a discounted licencing arrangement over a new 3 year term. This agreement provides access to a variety of M365 applications, tools and modules which are essential to supporting the Councils business operations. As part of this arrangement the Council will be able to take advantage of enhanced licensing which is critical to support its COVID -19 response including a transition from Skype to Teams and enhancing the security of KCC’s infrastructure.

Decision type: Key

Reason Key: Expenditure or savings of more than £1m;

Decision status: Recommendations Approved

Notice of proposed decision first published: 21/05/2020

Anticipated restriction: Part exempt  - View reasons

Decision due: Not before 23rd Jun 2020 by Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Reason: In order that the proposed decision can be published for a minimum of 28 days, in accordance with statutory requirements

Lead member: Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services

Lead director: Rebecca Spore

Department: Strategic & Corporate Services

Contact: Andrew Cole, Head of Technology Commissioning & Strategy Tel: 03000 417554 Email:


Cabinet Committee Members were engaged informally via email in advance of this proposed decision being published and all comments received were duly considered by the Cabinet Member.


Financial implications: Discussions are underway with Bytes and Microsoft to confirm final commercial arrangements. Initial indication based on current use is that the 3 year costs (July 2020 – June 2023) will equate to approx. £9,900k. Year 1 July 2020 - June 2021 - £2,963K Year 2 July 2021 - June 2022 - £3,273K Year 3 July 2022 - June 2023 - £3,666K It is proposed that COVID-19 budget is used to fund the element that has been brought forward ahead of forecast expenditure. The remaining contract costs will be accounted for within the IT budgets.

Legal implications: There are no legal implications.

Equalities implications: There are no equality implications.