DfE signs £4m two-month Azure extension as new cloud deal looms


The department has worked with Bytes Software Services since 2020 and, after awarding a short-term follow-on deal, has spent about £86m on cloud hosting provided by the Microsoft reseller partner

The Department for Education has spent almost £4m on a short-term extension of its contract for the provision of Microsoft Azure hosting services, with a replacement deal due to come into effect next month.

The DfE signed a deal with Microsoft reseller partner Bytes Software Services on 1 June 2020. This contract ran until the end of May 2024, and was originally valued at £45.45m – a figure that was last year increased to more than £68m – equating to £81.8m once VAT is included.

An additional sum of £3.8m is to be spent on a de facto extension, in the form of a separate contract that covers the months of June and July.

The follow-on deal is intended to ensure “continuity of service” while provisions are made for a replacement cloud-hosting agreement that, according to a newly published commercial notice, is imminent.


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“A standalone procurement is currently being conducted via the CCS TePAS 2 (Technology Products and Associated Services 2) framework… to source a replacement contract for Cloud Hosting Services and associated support, with this contract due to commence on 1 August 2024.”

The procurement procedure to award this contract began late last year, when the department began the process of engaging with potential suppliers.

“DfE is considering its options for the future provision of cloud hosting services,” it said, in an engagement notice. DfE is hosting an industry market engagement event to give potential suppliers the opportunity to better understand our needs. In return we are looking for information on best practice and potential ways forward that better inform our emerging requirements.”

Sam Trendall

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