UK government inks five-year cloud and AI deal with Microsoft

Microsoft and the UK government have signed off on a five-year agreement that will provide the latter with access to a wide range of cloud and AI products, Microsoft has announced.

Centered specifically on the public sector, the deal will allow individual governmental bodies to pursue digital transformation goals via a range of Microsoft products from November 1 this year.

Through their chosen procurement route, public sector organizations will receive cost savings on Microsoft 365, the Azure cloud platform, business applications, and Microsoft 365 Copilot.

The UK government reportedly aims to up the speed of innovation across the public sector through the partnership, as well as enhance efficiency, improve communication between departments, and deliver improved services for UK citizens.

Microsoft CEO Satya Nadella unveiled the deal as part of Microsoft AI Tour London, where ITPro was in attendance, citing the importance of supporting the public sector with technology.

“Perhaps one of the biggest pieces of impact we’ll have is in the services that governments offer, whether it’s in health, whether it’s in education, whether it’s in energy, or any sector of the government that will be transformed using this technology,” Nadella said.

“It starts by actually putting this in the hands of civil servants all over and for them to be able to use it in their own work,” he added.

Microsoft said it will support the UK government’s wider goals through the deal, which include delivering economic growth to fund public services, easing the cost of living crisis, and creating employment opportunities.

“AI technologies present a unique opportunity to transform public services and fuel the UK’s economic growth,” Clare Barclay, CEO of Microsoft UK, said.

“This exciting new five-year partnership will mean Microsoft can continue to support the UK Government to create a world-class, digital-first public sector infrastructure, that will improve service delivery for citizens across the whole of the UK and create opportunities for all,” she added.

The new deal is also skills-focused, aligning with the UK’s aim to create a more digitally adept workforce. Microsoft is reportedly already developing new certifications and training programs for public sector employees.

As it works to build new cloud services, the UK government is looking to enhance the quality of data, enable governmental departments to make more informed decisions, and establish a more digital public sector.

“This agreement will support eligible public sector organizations to pursue their digital transformation and innovation ambitions, by enabling them to benefit from leveraging the size and scale of the UK public sector,” Roger Gonourie, Chief Commercial Officer at Crown Commercial Services (CCS) said.