Govt inks Oracle deal to cut IT procurement costs

The federal government has entered a whole-of-government volume sourcing agreement with Oracle in a bid to cut the cost of procurement.

The three-year deal was revealed on Friday afternoon following more than three years of negotiations with the major software and cloud vendor.

It is the seventh co-ordinated procurement arrangement to have been established by the Digital Transformation Agency since 2017.

Other whole-of-government deals already exist with Rimini Street, AWS, SAP, Microsoft, Concur and IBM, which range in values of up to $1 billion.

A spokesperson for Oracle said the company was not yet in a position to reveal the value fof the agreement.

The agreement gives federal agencies, as well as state and territory governments, a consistent, cost-effective way to access Oracle products and services by leveraging scale.

It is effective immediately for all new Oracle contracts, while transition arrangements have been established for existing contracts.

All of Oracle’s offerings across software licencing, hardware, professional services and cloud services are covered under the deal.

Oracle said this includes “integrated applications for sales, service, marketing, HR, finance, supply chain and manufacturing, plus highly-automated and secure cloud infrastructure”.

“Oracle’s local second-generation cloud regions... will also provide agencies with security, locally hosted data, and full onshore disaster recovery capabilities,” the company added.

Oracle’s A/NZ vice president and regional managing director Cherie Ryan said the new arrangement will make it easier for agencies to move forward with their transformations.

“It comes at a time when Oracle continues to invest in the Australian market, including the recent openings of our Melbourne and Sydney second-generation cloud regions which offer public sector customers a secure, local and future ready migration path to the cloud,” she added.