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CCS and Microsoft agree pricing deal for AI products

21/10/24
Digital handshake
Image source: istock.com/Yevhen Lavunhov

The Crown Commercial Service (CCS) and Microsoft have announced a new five-year agreement to give UK public sector bodies cost savings on the company’s AI products and services.

It will become effective from 1 November under the SPA24 agreement between the procurement agency and the company, adding Microsoft Copilot to those already available for Microsoft 365 and the Azure cloud platform.

This is designed to support the public sector in embedding generative AI into Microsoft’s productivity apps.

The two parties last agreed on a memorandum of understanding on pricing in 2021.

In addition, Microsoft said it is developing new certifications and skilling programmes for public sector employees, and planning further investment in its Enterprise Skills Initiative. It is also aiming to make available events, workshops, self-paced learning and certifications for users across government.

Supporting digital transformation

Roger Gonourie, chief commercial officer at CCS said: “This agreement will support eligible public sector organisations to pursue their digital transformation and innovation ambitions, by enabling them to benefit from leveraging the size and scale of the UK public sector.

“It shows CCS’s continued commitment to providing maximum commercial value for our customers, removing barriers to growth across the public sector. It's about securing a better future for us all.”

Clare Barclay, CEO of Microsoft UK, said: “AI technologies present a unique opportunity to transform public services and fuel the UK’s economic growth.

“This exciting new five-year partnership will mean Microsoft can continue to support the UK Government to create a world class, digital first public sector infrastructure, that will improve service delivery for citizens across the whole of the UK and create opportunities for all.”

CCS said that eligible public sector organisations do not need to use a particular procurement route to take advantage of SPA24 but must ensure they undertake a compliant process. The agency recommended using its Technology Products and Associated Services 2 framework.

Detail on SPA24 added 22.10.24 am after publication of CCS announcement

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