An agreement has been reached by SAP with the Digital Transformation Agency (DTA) covering the entire government for a minimum of $142 million over an initial period of three years.
Both parties have indicated that the agreement includes “access to SAP solutions and services” for various Commonwealth departments and agencies currently utilizing the vendor’s enterprise resource planning (ERP) system.
Scheduled to take effect on June 29, the agreement encompasses software, cloud services, and professional services.
“This agreement will ensure that Commonwealth agencies can still avail SAP products, services, and assistance, giving them ample time to design their ERP upgrade initiatives in accordance with the government’s recently introduced ERP strategy for the Australian Public Service (APS), under the secure and agreed-upon terms of the new agreement,” stated DTA CEO Chris Fechner in a published blog entry.
Angela Colantuono, President and Managing Director of SAP Australia and New Zealand, mentioned that the agreement “will also facilitate gradual innovations, including Artificial Intelligence.”
The initial agreement with SAP was signed by the government back in 2017 for $42 million, as reported by IT News. However, as is typical with such contracts, the actual value to SAP has turned out to be significantly higher.
A renegotiation of the long-standing offer arrangement commenced last year.
This renegotiation coincided with a change in the government’s ERP strategy, as it had previously aimed to implement a unified SAP system across the federal government. However, the approach has since been altered, allowing agencies to once again make individual ERP decisions.
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