Health signs $37m device-as-a-service deal

The Department of Health, Disability and Ageing has shifted from traditional end-user compute licencing to a device-as-a-service arrangement worth $37 million.

The department tapped long-term reseller partner Datacom to supply “standardised devices” over the next three years, saying the model offers “greater flexibility, scalability and cost predictability”.

DaaS traditionally refers to a subscription-based service that bundles hardware, software licenses, lifecycle management, and support into a single package, unlike traditional models where hardware is purchased outright and software licenses are managed separately.

The department, which was until recently known as Health and Aged Care, said the deal “supports the department’s shift towards modern, sustainable IT service delivery by streamlining procurement and lifecycle management”.

“The solution will replace a range of ageing devices that are no longer supported or fit-for-purpose."

The Department of Health declined to disclose the number of devices or vendors involved, citing “security and operational” reasons.

On the end-user computing front, Datacom has traditionally partnered primarily with HP, although it also has relationships with Dell and Lenovo.

Currently, the reseller offers a DaaS solution featuring VMware’s virtual desktop infrastructure and Workspace ONE.

Since 2015, Health has engaged Datacom for infrastructure and support services under a contract initially valued at $176.6 million.

By the contract’s expiry on June 30, 2025, its value had increased to $888 million.

At the time of publication, Health was unable to confirm whether the new DaaS deal replaces the end-user computing component of this decade-long outsourcing arrangement.

However, Datacom has noted that the contract included the provision of laptop computers during the pandemic.