Army, Air Force and DISA sign $617M Microsoft deal

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The Army, Air Force and Defense Information Systems Agency have entered into a 3 year, $617 million license agreement with Microsoft, Defense Department officials announced Dec. 28.

Microsoft (NASDAQ: MSFTsays the licenses will cover nearly three quarters of all DoD personnel. The deal was made via Microsoft reseller Insight Public Sector and includes Microsoft Office 2013, SharePoint 2013 Enterprise and Windows 8. The company will work with the military services to roll out standard configurations of its latest operating system, it also says.

Air Force officials say the contract will result in cost avoidances of $50 million annually, while Army officials say they'll avoid expenditures of $70 million each year. DISA Vice Director Navy Rear Adm. David Simpson says his agency will save 10 percent on licenses over the 3 year life of the contract, but he didn't specify a total amount.

Simpson also said the deal will advance a DoD focus on mobile computing.

"Microsoft is committed to making sure that the technology within the agreement has a mobile-first focus, and we expect to begin to take advantage of Microsoft's mobile offerings as part of our enterprise mobility ecosystem," he said.

For more:
- read the DoD announcement of the deal
- go to the Microsoft press release

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