Title
Consider a memorandum/resolution authorizing the renewal of a 3-year Microsoft Enterprise Agreement, in the amount of $1,884,699.00.
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DATE: September 16, 2025
TO: Kent Cagle, City Manager
FROM: Willie Resto, Executive Director of Information Technology
SUBJECT: Microsoft Enterprise Agreement Renewal
BACKGROUND AND FINDINGS:
In 2023, the City of Killeen entered into an Enterprise Agreement (EA) with Microsoft through a cooperative volume licensing program. This agreement standardized the City's software licensing, ensured compliance, and delivered cost savings by eliminating the need for piecemeal license purchases with every hardware refresh.
The EA serves as the foundation for the City's core software infrastructure, desktop security, collaboration applications, and productivity tools. Renewing the EA for another three years will ensure continued compliance, predictable budgeting, and access to Microsoft's latest technology and security updates.
The new agreement reflects higher costs due to several factors:
* More Users & Devices: Growth in City staff, laptops, servers, and mobile devices.
* Expanded Services: Includes enhanced collaboration tools, cloud features, and advanced security services.
* Cybersecurity & Compliance Needs: Ensures IT can maintain current Microsoft versions and security patches.
* Microsoft Pricing Adjustments: Reflects global price increases; EA locks in fixed pricing for 3 years.
* Cost Avoidance: Avoids significantly higher retail costs for licenses and upgrades.
Without the EA, licenses and upgrades would need to be purchased individually at retail rates:
* 1,000 desktops/laptops - Retail Office & Windows upgrades: $600 each = $600,000
* Server licensing - Estimated retail cost avoidance: $50,000-$100,000
* Total 3-year savings estimate: $700,000+
These savings come in addition to improved flexibility and efficiency through Microsoft's Software Assurance program, which includes all upgrades during...
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