UK tech minister vows more whole-government megadeals after £9B Microsoft pact

Steven

UK tech minister vows more whole-government megadeals after £9B Microsoft pact

Summary

The tech minister, Liz Kendall, told MPs the government will pursue more whole‑of‑government deals with major vendors after a Strategic Partnership Arrangement with Microsoft worth about £9 billion over five years. The approach is intended to use Whitehall’s buying power to secure better prices for cloud and end‑user services (for example, laptops and cloud subscriptions). Officials say past cloud strategy led to vendor lock‑in and risk concentration, and the new push aims to improve value for money while centralising some procurement through the Government Digital Service and a Digital Commercial Centre of Excellence.

Key Points

  • Liz Kendall plans more whole‑government agreements to leverage bulk buying across Whitehall.
  • The Microsoft Strategic Partnership Arrangement 2024 is estimated at ~£9bn over five years (c. £1.9bn/yr).
  • Focus areas include end‑user services and cloud; ministers say the Microsoft deal drove lower prices and delayed renewals across departments.
  • Officials acknowledge previous cloud adoption created vendor lock‑in and risk concentration that weakened negotiating power.
  • The government also has strategic arrangements with Google and is tendering G‑Cloud 15 (valued up to ~£14bn), but must balance generic frameworks against departments’ specific needs.

Content summary

Kendall told the Science, Innovation and Technology Committee that Whitehall is “systematically” reviewing tech spend and negotiating whole‑government agreements to secure better value. The Microsoft SPA24 is cited as an example where central negotiation produced lower prices and influenced when departments renewed licences. Civil service leaders — including the Department for Science, Innovation and Technology, GDS and the DCCE — aim to replicate that model across cloud and end‑user services while addressing long‑standing concerns about vendor lock‑in. The article notes earlier admissions from the Central Digital & Data Office about risk concentration, and highlights the ongoing G‑Cloud 15 tender as part of the procurement picture.

Context and relevance

This matters because centralised, high‑value deals reshape how UK public services consume cloud and software. Bulk buying can deliver savings and standardisation, but it also raises questions about competition, resilience and whether one agreement can meet diverse departmental architectures. The move sits alongside ongoing efforts to professionalise digital procurement (GDS, DCCE) and larger procurement vehicles such as G‑Cloud 15. For suppliers and public‑sector IT teams, these deals determine market access, pricing pressure and implementation timelines.

Author style

Punchy: this is a straightforward briefing on a big procurement shift — clear winners (buyers who want scale) and obvious risks (lock‑in and one‑size‑fits‑all contracts). If you’re in public sector tech, procurement or cloud supply, the details matter.

Why should I read this?

Quick and to the point: Whitehall’s planning to wield its wallet more aggressively. If you care about government IT spending, supplier strategy, or cloud contracts, this signals big procurement ripples — faster buys, potential savings, and renewed debate about vendor lock‑in. It’s short, relevant and worth a skim if you want to know how the UK will try to get more bang for its (very large) buck.

Source

Source: https://www.theregister.com/2025/12/08/uk_tech_deals/