Template for agenda items that include requests for action on project bids:

Memorandum

City of Lawrence

Information Systems

TO:	Thomas M. Markus, City Manager
FROM:	James Wisdom, Director of Information Technology
CC:	Bryan Kidney, Director of Finance
DATE:	June 7, 2016
RE:	Annual software maintenance for Microsoft software

Current Microsoft Select Software Maintenance Background

The City of Lawrence maintains a Microsoft Windows based network using Microsoft’s Active Directory ® to provide services to all departments in the City of Lawrence. For many years the City has maintained a Microsoft Select ® Agreement directly with Microsoft, purchasing Microsoft software through the State of Kansas software contract with Software House International. The City’s current three year agreement expires June 30, 2016. The annual Microsoft agreement allows the City to maintain our servers and applications with the latest versions of software, provides 24x7 technical support, offers convenient access to software and self-managed software asset management through the volume licensing website, and provides many other benefits through their Software Assurance ® program.

The software under maintenance being renewed is used at all levels within the City and includes licensing for 52 Windows based servers, Microsoft Exchange email, Microsoft SQL server licenses for over 80 SQL databases, Microsoft Office Professional, and other Microsoft applications.

Proposed Microsoft Software Enterprise Agreement

Information Technology is recommending to move from the Select Agreement to a Microsoft Enterprise Agreement that will be in effect for the period of 7/1/2016 thru 6/30/2019. The Microsoft Enterprise Agreement will allow us to better identify the products and services used by the City of Lawrence and provide lower pricing than the Select Agreement and provide many useful resources above our current agreement.

Change from Microsoft’s Device Licensing to User Licensing Model

For many years it has been to the City’s advantage to license Microsoft’s software to “devices” rather than “users.” The proliferation of mobile, and portable devices, and the need for users to access email, networks, and software using home devices has made it more advantageous to move to the user licensing model. Device licensed users need a separate device license for each device used to access email, networks, or Microsoft applications. In addition to desktop PC’s, device licenses are needed for users using smartphones, iPads, laptops, or home systems. Under the user licensing model, each user would be licensed for up to 15 devices. This change will also make it easier to assure that we are properly licensed.

Microsoft Office 365 and the Government Cloud

Information Technology recommends moving from the current Microsoft Office Professional licenses to Microsoft Office 365, and to take advantage of many of the needed services provided by Microsoft’s Government Cloud. The City would use a mixture of licenses, which Microsoft identifies as E1 and E3, Government licenses.

· E3 licenses would be used by the heavier system users and would provide many needed options that the City of Lawrence has needed for many years.

· Online versions of Microsoft Office would be accessible from the City’s network or from any remote location, which will improve the City’s ability to provide continuity of many business services.

· E3 users could also have Microsoft Office on tablets and smartphones; E1 users would need to use ActiveSync.

· One Drive is Microsoft’s cloud based storage, meaning that Microsoft would provide one terabyte of storage for each Office 365 E1 and E3 licensed user. The cloud-based storage would allow for much needed storage the City hasn’t been able to afford.

· E1 and E3 licensed users would have 50GB of email storage and unlimited archiving of email.

· Microsoft’s eDiscovery and Legal Hold would provide the City better tools to do open record searches and to invoke legal hold on email changes.

· E1 and E3 users could take advantage of Microsoft’s Skype for Business and have unlimited online meetings.

· Microsoft’s Sharepoint services are web-based applications for implementing intranets, extranets, content management, and a variety of other enterprise collaboration services.

· Professional Services for implementing the services described would be included since the City has maintained Software Assurance ® maintenance with Microsoft.

· I.T. would recommend adding the eDiscovery and email archiving option on the lower cost Enterprise G1 licenses.

Putting Exchange in Microsoft’s datacenters allow the City to create a better recovery solution in case of disaster or emergency, allowing us to access and retain email records in time of emergency. Microsoft maintains the data at more than one datacenter.

· In the future, the City may look at the optional lower costs Enterprise Kiosk K1 licenses to meet H.R.’s recommendation that the City employees have email for employees that are currently without email. The K1 licenses allow users basic access to email with a 2GB inbox per user, anti-malware, anti-spam, and Exchange ActiveSync for smartphones.

Software Funding

The software maintenance is funded by the user departments/divisions and is broken down by department.

Action Requests

Authorize the City Manager to sign the Microsoft Enterprise Agreement with Microsoft, and approve a purchase order to Software House International in the amount of $105,730.87 for the annual software maintenance for the period from July 1, 2017 to June 30, 2018.