CyberTech Rambler

May 26, 2009

New Zealand government stop making 3 years deal with Microsoft

Filed under: Uncategorized — ctrambler @ 4:01 pm

It is not an interesting news for open source or proprietary source but rather for its shock value: A government dare to say No to a key provider.

With this, I do not mean it is a shock or horror story because it is Microsoft that did not get the deal, as I would had felt the same if it was IBM or Oracle.

If you think NZ government is not going to part huge sum of money to Microsoft and divert the money to other vendors, including open source vendors. think twice. This is not what the no-deal mean.

Instead, it is apparent that the New Zealand Government thinks that a group of more targetted contracts with Microsoft much better fits its purpose than a blanket deal.

That is not unusual either. Personally I think it is a better approach. A government is too diversified. Different segments of a government has different needs. A blanket agreement  that satisfy all is difficult to achieve. To write any contract for a organization as diverse as a government involve both sides making educated guess and the results is often not satisfactory.

Microsoft is known to bend over backwards to keep its grip on strategic contract. A government contract is quite a strategic one. Failing to have a blanket one might look like a small setback on paper. In the longer run, it need not be. A group of better targetted contract is more likely to deliver customer satisfaction and can be better for the company in the long run.

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