Microsoft, Dell Ink $500M Deal with Air Force

The multiyear deal, a consolidation of multiple support and software agreements with the Air Force, will see Microsoft provide core server software, maintenance and upgrade support, while Dell will supply more than 525,000 Microsoft desktop Windows and O

Microsoft Corp. and Dell Inc. on Friday will announce a significant consolidation of multiple support and software license agreements with the U.S. Air Force into a single enterprise agreement worth as much as $500 million over six years.

This multiyear deal will see Microsoft provide core server software, maintenance and upgrade support, while Dell will supply more than 525,000 Microsoft desktop Windows and Office software licenses.

The deal, which Microsoft and Dell officials say is one of the worlds largest single enterprise-level implementations in the world, forms part of the One Air Force, One Network initiative and is designed to simplify the acquisition process while meeting demands for stringent enterprisewide cyber-security requirements, timely distribution of software updates and enterprise configuration management.

Under the arrangement, Microsoft will provide core server software, maintenance and upgrade support to the Air Force in a move that overhauls previously decentralized software support contracts into a single enterprisewide support agreement so the software system can be managed and supported much as traditional weapons systems are, Curt Kolcun, general manager for Microsoft Federal, said in a statement released late Thursday night.

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Core server software supported under the agreement includes Microsoft Windows Server 2003, Microsoft Exchange Server, Microsoft Systems Management Server, Microsoft SQL Server and Microsoft Office SharePoint Portal Server.

Through Software Assurance, Air Force personnel will also get desktop licenses for use at work and at home, through the Home Use Program which gives the staff the option of buying a licensed copy of select Office desktop applications for use on a single home computer at a nominal cost, Kolcun said.

For its part, Dell will supply the Air Force with more than 525,000 Microsoft desktop Windows and Office software licenses. This software products initiative consolidates 38 software license agreements previously established by the Air Force and will allow it to implement standard configurations of software that will be mandated for use across global Air Force operations.

Troy West, vice president of Dell Federal Systems, said in a prepared statement that the agreement builds on Dells long-standing relationship with the Air Force. "As an organization with facilities worldwide, it is important for the Air Force to efficiently and affordably procure technology when and where it needs it. This agreement enables it to accomplish that goal," he said.

Next Page: Other DOD organizations supported.