Title
Recommendation to Approve Purchase of the Microsoft 365 Subscription Licensing Agreement from SHI, a Microsoft Reseller Partner, Utilizing Riverside County’s Statewide Competitively Awarded Microsoft Enterprise Agreement Allowing All City of Alameda Staff to Move to the Microsoft 365 Platform for a Total Three-Year Agreement Not to Exceed $935,290. (Information Technology 60626074)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) currently utilizes Microsoft software products on desktop computers and servers that reside on the City’s computer network, standalone computers, as well as some services hosted in the cloud. The City is looking to move away from the current legacy Microsoft services. As Microsoft and other technologies evolve to cloud-based solutions, staff determined that is it in the City’s best interests to transition to Microsoft Office 365 Government Cloud (Microsoft GC), which provides more robust productivity, security, compliance and collaboration tools. This version is specifically designed for the public sector and meets compliance requirements for all levels of government. . Providing a Microsoft 365 GC license to all City users will grant access to the many tools in the Microsoft 365 platform, promoting significant increases in the areas of security, efficiency, availability, and collaboration.
BACKGROUND
Microsoft currently provides several services to the City, such as email and the productivity suite of applications known as “Microsoft Office”, which includes applications, such as Word, Excel and PowerPoint. By upgrading the licensing to the Microsoft 365 government cloud platform, the City will benefit from a more secure, robust version of these Microsoft services, significantly increasing staff’s capabilities to perform their tasks in a more efficient, collaborative, and safe manner.
In 2025, Microsoft will discontinue support of on-premises Exchange, which is the City’s current platform. At that time, the City would be required to either migrate to the Microsoft 365 Exchange Online version or identify another solution. This purchase ensures the City moves to Microsoft 365 in advance of that expiration with sufficient time for implementation.
DISCUSSION
Moving critical services like email, domain administration and identity access to the Microsoft cloud platform ensures key components like security and access are managed by the sizeable Microsoft personnel and internal systems rather than the relatively small number of City Information Technology staff, which creates significant efficiencies for City staff. Staff are currently responsible for updating and troubleshooting Microsoft products that are directly hosted on all City computers and this can be time consuming.
From an efficiency and collaboration standpoint, with the Microsoft 365 GC subscription, all users will have the latest Microsoft Office version, ensuring up-to-date security and features are always available. Additional services such as OneDrive (cloud-storage), MS Teams (web collaboration), and SharePoint (intranet) provide additional value and work capacity for staff by either augmenting staff’s current capabilities or introducing new ones.
As a “government cloud” system, Microsoft 365 Government provides higher security features than a more standard “consumer cloud.” With ever-increasing sophisticated and malicious cybersecurity attacks, organizations without dedicated cybersecurity are vulnerable to attacks, as seen in recent cyberattacks on nearby Bay Area cities. Microsoft 365 will greatly enhance the City’s cybersecurity, in addition to other cybersecurity measures taken by the City. Some key Microsoft 365 Government security features include:
• A single sign-on so staff can use one logon for all cloud services such as Zoom and Tyler ERP (finance and personnel management system);
• The use of OneDrive or SharePoint for all City files rather than hosting files on City servers. Microsoft ensures storage security compliance with entities such as Criminal Justice Information Services whereas document sharing applications, such as Dropbox that are currently in use by staff, do not comply.
FINANCIAL IMPACT
The total cost of the three-year Microsoft 365 subscription is $935,290 to be paid annually as specified in the table below. This rate is based on the Riverside County Statewide Cooperative License Purchase Agreement with Microsoft. The funds for this purchase for Fiscal Years 2023-24 and 2024-25 are currently budgeted in the Information Technology Internal Service Fund (606). Funds for the third year of the agreement are subject to future City Council appropriations.
|
Contract Year |
Amount |
|
1 August 7, 2023-May 31, 2024 (prorated) |
$255,076 |
|
2 June 1, 2024-May 31, 2025 |
$340,107 |
|
3 June 1, 2025- May 31, 2026 |
$340,107 |
|
TOTAL: |
$935,290 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE CHANGE
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Approve the purchase of the Microsoft 365 Subscription Licensing Agreement from SHI, a Microsoft reseller partner, utilizing Riverside County’s statewide competitively awarded Microsoft Enterprise agreement.
Respectfully submitted,
Carolyn T. Hogg, Information Technology Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Quote from SHI of the Microsoft 365 annual subscription
2. Riverside County’s Statewide Competitively Awarded Microsoft Enterprise Agreement