Microsoft’s whole of government sourcing arrangement is set to cost Canberra at least $258 million over the next 12 months, foreshadowing a massive uptick in demand for cloud services from agencies.
The latest extension, which pushes the overall cost of the mega-deal to $1.2 billion, is the largest single-year increase secured by the Redmond-based tech giant since the agreement was signed in 2019.
It comes as the government faces growing pressure to reform its secretive single-sourcing arrangements, which some local players argue creates a “’red carpet’ procurement path”.
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