Australian government looks to cut support costs with Rimini Street deal

Joins IBM, AWS, SAP with volume sourcing agreement expected to offer benefits for smaller agencies

Australian Parliament House, Capital Hill, Canberra, Australia
Mlenny / Getty Images

Rimini Street is the latest technology provider to sign a volume sourcing agreement (VSA) with the federal government's Digital Transformation Agency (DTA).

The company, which offers third-party support services for Oracle and SAP software, joins the ranks of IBM, Concur, Microsoft, SAP and Amazon Web Services (AWS), which have all signed VSAs with the government.

The DTA expects the four-year deal will make it easier and more cost effective for government agencies to access third-party software support for major software products.

“The DTA continues to expand whole-of-government volume sourcing agreements to ensure that agencies have ready access to the best pricing, terms and conditions that leverage the buying power of government,” DTA CEO Randall Brugeaud said.

Rimini Street already counts as public sector clients the NSW Department of Family and Community Services, and Victoria's Department of Economic Development, Jobs, Transport and Resources, among others.

“Government agencies of all sizes now have easier access to an affordable alternative for their enterprise software maintenance and more options to consider in support of the GovERP Initiative,” Rimini Street regional general manager A/NZ Emmanuelle Hose said in a statement.

The first VSA announced was between the DTA and SAP in September 2017 for software licensing and maintenance, professional services and cloud services. Soon after, a deal with SAP’s Concur was announced, in December 2017 for travel and expense management software and implementation services.

The deal with IBM, worth $1 billion, was revealed in July 2018. The five-year agreement was expected to deliver more than $100 million in savings.

In June 2019, a VSA capped at $39 million was signed with AWS to help slash the public sector’s cloud bill.

The renewal of a VSA with Microsoft came a month later. This was the fourth iteration, with the new agreement taking effect at the start of July and set to expire on 30 June 2022.

Under the agreement, agencies are required to purchase Common Cloud Enrolment (CCC) products and services from the Digital Transformation Agency; non-CCC products are purchased via Data#3 which is the sole provider for government agencies under the VSA.

In January, the DTA revealed its new Digital Sourcing Contract Limits and Reviews Policy, which replaces the ICT Contract Capped Term and Value Policy, which now allows for contract extensions to exceed the length of an initial deal.

At the time, the DTA said that contract extensions, which previously could not exceed the length of the original contract, can be up to three years. However, an extension is only possible after a contractor’s performance and deliverables are reviewed.

Copyright © 2020 IDG Communications, Inc.

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