Oracle Cloud has just inked a whole-of-government volume sourcing deal with Australian federal Government. The Digital Transformation Agency (DTA) has signed the deal with the cloud vendor to cut procurement costs and make it easier for various pillars of the government agencies, including federal and state to purchase the vendor’s products and services flexibly. The DTA has also made multiple other deals with other vendors like Microsoft, AWS, SAP, and IBM. The deals are estimated to be worth up to $1 billion. This is the seventh co-ordinated deal made by the DTA since 2017.
The Oracle deal will allow Australian agencies to access Oracle’s software and cloud services along with its cloud infrastructure Oracle Autonomous Database. Accursing to sources, the deal between the software provider and the Australian Government took over three years to be finalized. While the terms of the deal have not been disclosed yet, the DTA said the deal will help the Government save on cloud costs along with benefitting from increased flexibility in buying the major cloud vendor’s technology allowing them to get more value from their investments.
Although the deal states that only the public companies can benefit from the deal to buy Oracle products and services, the DTA clarified that corporate entities also have the option to participate in the deal. Australian National Audit Office also released a report detailing that the Australian Government has made deals worth $490.8 billion with Telstra, IBM, Boeing, and many more over a 10-year period. There are also reports that the Australian Government has undertaken 62 projects valued at $10 million being managed by the DTA.
The DTA was established in early 2015 with the purpose of unifying government agencies online. It was earlier referred to as the Digital Transformation Office (DTO), the DTA works at an advisory level to the Government.
In a statement, Oracle vice president and regional managing director ANZ Cherie Ryan said, “this arrangement with the DTA builds on our already strong partnership with Australian federal Government and is set to make it easier for government agencies to move to the next stage of their digitally enabled whole-of-government transformations. It comes at a time when Oracle continues to invest in the Australian market, including the recent openings of our Melbourne and Sydney second-generation cloud regions which offer public sector customers a secure, local and future-ready migration path to the cloud.”
Meanwhile, the DTA said, “we’ll work with those entities closer to the end of their support term or as needed. All new contracts must be made under the new arrangement.”