The Australian Digital Transformation Agency (DTA) has extended its volume sourcing agreement (VSA) with Microsoft, with the contract's value escalating to nearly $954 million. Now in its seventh year, the deal is almost tenfold its original estimate of $96 million, reflecting growing demand for Microsoft 365 and Azure services among government agencies. 

A noteworthy addition to this latest agreement is Microsoft Copilot, which predates the original contract. This 'additional product' was initially negotiated in 2019 for a duration of three years. A six-month trial involving 7,400 government employees was conducted under the previous agreement, with Copilot available for 'participating agencies'. 

In addition, the VSA supports 180,000 licenses for Microsoft Office and other services sold to agencies via the government's official Microsoft reseller, Data#3. Originally set at $96 million for three years in 2019, the contract's cost rose dramatically to over $800 million by November 2021, following an amendment that extended its term by another three years to June 2025. 

The DTA affirmed that the renewed contract would ensure the continuation of current commercial arrangements and provide extended timescales for contract reviews and engagements.

- CyberBeat