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”.

The new deal replaces the end-user computing component of the Health's decade-long infrastructure and support services agreement with Datacom, which expired on June 30 this year.

First signed in 2015, the contract was initially valued at $176.6 million, but its value had increased to $888 million upon expiry last month. 

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.