Staff recommends that City Council approve the Microsoft Enterprise/Volume Licensing 3-Year Agreement and the associated license renewals on the SHI, Inc quote.  Licensing is paid in 3 equal annual payments of $87,191.78 for an agreement totaling $261,575.34

Microsoft and SHI, Inc are valued business partners with the City of Billings.  The Microsoft Enterprise/Volume License 3-Year Agreement (ELA) is a renewal of our existing ELA contract and covers our Microsoft Office 365 Outlook/Email services for all city staff and the remaining suite of products (Word, Excel, Teams, One-Drive, SharePoint, PowerPoint, Publisher, etc) for about 50% of our end-users.  Additionally, the Microsoft ELA covers the licensing for our largest database SQL Server which supports all of our Innoprise/CitySuite applications plus other key applications throughout the organization. 

Attached is a quote from SHI, Inc for the Microsoft license renewals.  SHI, Inc is an authorized reseller for Microsoft licenses through the State of Montana/NASPO contract #AR2488.  The quote from SHI, Inc shows the totals for year 1, 2, and 3 at $87,191.78/yr.

The Microsoft ELA is an engrained part of doing business and is required to support all users throughout the organization.  For years, we have planned for and included the cost of the annual Microsoft ELA in our O & M budget.

City Council may:

• Approve; the new Microsoft Enterprise/Volume 3-Year License Agreement and associated SHI, Inc quoted license renewals or,
• Not Approve and provide staff with direction on how to proceed.

The Microsoft Enterprise/Volume License Agreement (ELA) and associated SHI, Inc quote, with an annual renewal amount of $87,191.78, is included in the approved Information Technology FY2023 Budget.  The annual licensing costs are a part of our O & M and are designed to fund the Microsoft Enterprise/Volume License annual renewals in FY23 and into the future.