DHS renegotiates licenses with Microsoft, Oracle

The Department of Homeland Security says it will save $89 million in software licensing fees by renegotiating contracts with Microsoft and Oracle--a move that should be considered by other government agencies.

Part of a department-wide efficiency plan, DHS consolidated 487,000 licenses into a blanket software-and-maintenance agreement with Microsoft. It is estimated this will save $87.5 million over the next six years. Immigration and Customs Enforcement consolidated 200 Oracle licenses into one "unlimited" license at a savings of $1.5 million over the next year.

The savings are small in the context of a $6.2 billion fiscal 2009 budget for DHS, but it's a start. Such renegotiations have become commonplace in the private sector, and with federal budget deficits so high, following the DHS lead should be essential.

For more on DHS:
- check out this InformationWeek article