The Victorian government has inked a three-year state purchasing contract with Google to give public servants easier access to the tech giant’s cloud services and workflow tools.
The annual estimated contract value is $1.8 million, but gives Google its first key head agreement for cloud with the Victorian government, which already holds similar deals with hyperscaler rivals Amazon Web Services and Microsoft.
The state purchasing contract (SPC) – similar to federal whole of government agreements – gives state agencies easier access to, and consistent procurement of, Google’s cloud services, workspace and analytics.
The deal, which also includes enterprise support and professional services, does not mandate the use of Google.
The $1.8 million value that was confirmed by a Victorian Department of Government Services spokesperson after Google announced the deal last month.
At under $ 2 million a year, Google’s SPC is far below Microsoft’s estimated $200 million annual SPC, signed last year and also covering enterprise products, and AWS’ 2021 deal for $20 million a year. It also trails those of tech suppliers DXC ($8.4 million) and SAP ($3.3 million).
The Victorian government is looking to transition agencies to SPCs and their combined purchasing power wherever beneficial and identifies SPCs based on procurement data.
Exemptions to an SPC are available where the agency is unable to obtain value for money under it or where a regional supplier can provide the same or better value.
Google Cloud announced the agreement last month, saying it would accelerate the digital transformation of the Victorian public service.
“Cloud technology plays a critical role in driving innovation — across both national and local levels. We’re proud to collaborate with the Victorian Government to bring the possibilities of the cloud to more public sector organisations,” Google Cloud ANZ public sector director Brian Senior said in a statement.
“Together we can build cloud-based solutions that deliver a better digital future for all Victorians.”
The Victorian government holds similar state purchasing contracts with other tech vendors like ServiceNow, Salesforce, SAP Oracle, and IBM.
The new Google Cloud deal run until February 2027.
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