CCS agrees five-year discount agreement with Microsoft


Government procurement agency the Crown Commercial Service has announced a new memorandum of understanding offer bodies across the public sector savings on a wide range of Microsoft technologies, including AI

The Crown Commercial Service has unveiled a five-year agreement with Microsoft offering organisations across the public sector discounts on a range of the software vendor’s products – with a particular focus on artificial-intelligence tools.

The Strategic Partnership Arrangement 2024 (SPA24) follows on from several iterations of the Digital Transformation Arrangement memoranda of understanding between CCS and Microsoft. The most recent of these came into effect in 2021.

For the first time, the new public sector-wide agreement offers savings on Microsoft’s Copilot generative AI platform. Also covered by the arrangement are tools including Microsoft 365,  Business Applications, and Azure cloud-hosting services.

The STA24 engagement – which is set to last two years longer than its preceding arrangements – offers discounts to all public bodies buying Microsoft goods and services via a “compliant procurement process”. CCS recommends using its Technology Products and Associated Services 2 framework, which runs until 2027.

“But organisations can choose the route to market that best fits their needs,” CCS added.


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The new MoU comes into effect on 1 November. In the weeks thereafter, the procurement agency will run “a number of aggregated competitions via resellers” to, effectively, bulk buy Microsoft wares on behalf of public-sector entities. Potential buyers interested in taking part in a major aggregation for use in summer 2025 have until 29 November to express their interest.

Roger Gonourie, chief commercial officer at CCS, said: “This agreement will support eligible public sector organisations to pursue their digital transformation and innovation ambitions, by enabling them to benefit from leveraging the size and scale of the UK public sector. It shows CCS’s continued commitment to providing maximum commercial value for our customers, removing barriers to growth across the public sector. It’s about securing a better future for us all.”

Alongside the product savings, the new MoU will also see Microsoft provide new training schemes and skills certifications for public-sector personnel. The vendor will also support Whitehall leaders in their work “to build the next generation of government cloud services”.

Clare Barclay, CEO, Microsoft UK, said: “AI technologies present a unique opportunity to transform public services and fuel the UK’s economic growth. This exciting new five-year partnership will mean Microsoft can continue to support the UK government to create a world-class, digital-first public sector infrastructure, that will improve service delivery for citizens across the whole of the UK and create opportunities for all.”

Sam Trendall

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