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The world’s largest software supplier, Microsoft, has won a nine-year contract worth an estimated £500m to supply IT systems to the NHS. The deal means 900,000 computers running the company’s software will be imported to the health service as part of a plan to save taxpayers up to £330 million. Microsoft CEO Steve Ballmer is understood to have held personal negotiations back in the summer with Richard Granger, head of the NHS national programme for IT. Under stated terms and conditions, the company will provide its Windows operating system to the NHS alongside a suite of desktop software products, able to run more smoothly with existing NHS technology. Industry observers said the deal marks the first occasion the US giant appears willing to tailor their products to fit a specific profession. The company has so far committed £40m to create software that will allow clinical technology from other vendors already in the NHS to fuse better with Microsoft products. “The NHS is in a uniquely strong position as an IT customer, currently the largest procurer of IT services in the world,” said Richard Granger, Director General NHS IT. “This agreement illustrates Microsoft’s commitment to supporting the needs and demands of one of its most important customers. “It represents not only substantial savings over both previous NHS pricing but also that of other public sector purchases. Extremely favourable terms and conditions for the NHS have been secured.” Under the contract, the end client can terminate the deal every three years – the same amount of time it will take the project to achieve a saving to taxpayers of some £112m. The move is expected to be warmly embraced by Microsoft after recent concern over the direct threat of Linux and other free, open-source alternatives. Microsoft’s fears peaked last week with the publication of a report from the UK Office of Government Commerce that recommended open-source as a money saving alternative for most government users. It is estimated the UK public sector spends more than £12bn a year on IT, prompting ministers to consider the report’s “significant savings.” The NHS deal for Microsoft falls under a broader supply pact between Microsoft and the OGC, which said recently it is tied into proprietorial software to run its databases effectively. Graham Taylor, director of pro-open source lobby group Open Forum, reflected: “Every public administration must embark on an urgent review of its long term strategy to ensure it is not locked into any single vendor.” Meanwhile Microsoft preferred to focus on the benefits the collaborative project would have for healthcare and NHS patients. “The National Programme for IT is set to make a great impact on healthcare provision and patient care in the UK,” said Terry Smith, Senior Director of Public Sector at Microsoft. “By putting the latest software in the hands of clinical professionals in a cost effective way through this agreement, Microsoft can help reduce costs and support these improvements.” He added the deal was “good for patients, healthcare professionals and the NHS as a whole.” Nov 4, 2004 Email this article Printer friendly page Previous Page
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