Department of Defense licenses $617 million in Microsoft products

Spending to focus on mobile and security packages

Sharepoint 2013

Microsoft announced Friday that it had closed a deal with the Department of Defense (DoD) last week to license $617 million in Microsoft products.

The software, which includes Office 2013, Sharepoint 2013, and WIndows 8 will be going to the U.S. Army, the U.S. Air Force, and the Defense Information Systems Agency (DISA).

Although this isn't the first partnership between Microsoft and defense organizations, it is the first to impact 75% of the DoD workforce.

The DoD estimates that the licensing agreement will save it's agencies "tens of millions over the course of several years through lower license and software assurance costs."

Surface war fares

The deal has been brokered to run through Insight Enterprises, a corporation with a reseller subsidiary that apparently got the DoD a bargain on Microsoft's latest.

Although the DoD hasn't specified the hardware to pair with its newly licensed software, its clear focus on the mobile platform hints that Microsoft's Surface tablet could be a key component to its strategy.

"Microsoft is committed to making sure that the technology within the agreement has a mobile-first focus," said Navy Rear Admiral David Simpson. "We expect to begin to take advantage of Microsoft's mobile offerings as part of our enterprise mobility ecosystem."

Simpson continued, "Bottom line: lower price for greater value."

Via Engadget