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Enhancements to UK, Oracle Deal May Save Taxpayers' Money

By Dominick Sorrentino, Web Editor

Software licensing applies to pretty much any business, organization or government entity that relies on software, which is pretty much every single institution across every known industry and vertical in the 21^st century. Our British friends across the pond are no exception, as a new three-year deal between the U.K.’s Crown Commercial Service (CC S) and global computing giant Oracle (News - Alert) seeks to deliver products and services to the public sector at lower costs.

The deal, according to V3.co.uk was initially inked in 2012 with the intention of saving £75 million over three years (about $118 million) in central government, emergency services and NHS spending by allowing agencies to purchase Oracle licenses in bulk. The new Memorandum of Understanding (MoU), likewise, is geared toward more affordable access to Oracle products for the government, which may trickle down to the residents of the U.K. in the form of tax savings.

“The enhanced MoU will deliver savings across government and allow easier and more effective procurement of Oracle products and services. It lays the foundation of a more collaborative relationship between government and Oracle,” Sally Collier, chief executive of CCS said.

If previous spending patterns on Oracle’s software licenses are any indication of the potential for savings, the new MoU is much needed. According to an article in The Stack, U.K.’s public sector spent approximately £290 million (about $457 million) for Oracle products. The exact value of savings that can be expected from the new deal has yet to be unveiled.

Of course, Oracle stands to gain from the deal as well by solidifying itself as a provider of information technology to the U.K. for public services.

“We are delighted to demonstrate our commitment to the agenda of the new government in saving money and delivering leading-edge information technology to help transform public services,” Dermot O’Kelly, Senior VP and UK Country Leader at Oracle, said—as reported by The Stack.  

As we so frequently say in the information technology industry—especially when it comes to software licensing—this new deal is a win-win; or as they might say in the U.K., it’s bloody brilliant.