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Microsoft lands desktop megadeals in U.K.

HM Revenue & Customs and the Department for Work and Pensions will both move to Windows XP.

Steve Ranger UK editor-in-chief, TechRepublic and ZDNet
Steve Ranger is the UK editor-in-chief of ZDNet and TechRepublic. An award-winning journalist, Steve writes about the intersection of technology, business and culture, and regularly appears on TV and radio discussing tech issues. Previously he was the editor of silicon.com.
Steve Ranger
Microsoft has signed two giant licensing deals with U.K. government departments, covering more than 230,000 desktops.

The software giant has inked contracts with HM Revenue & Customs (HMRC) and the largest government department, the Department for Work and Pensions (DWP), which is planning a move to Windows XP.

The company said the deals will give both departments access to the latest Microsoft software and will deliver "significant savings and efficiencies through aggregated procurement, more standardized working and reductions in support costs."

The three-year enterprise agreement with HMRC covers 104,000 desktops across the UK. It gives the department access to the full Microsoft product suite, including Windows, Office Professional, SharePoint, Systems Management Server and Exchange. The DWP deal covers 130,000 desktops.

HMRC commercial director Mark Forth said there will be "substantial cost savings over the term of the agreement," which also will allow HMRC to adopt a flexible approach to the delivery of its IT services.

Forth added that the coordinated approach to negotiating the deal has resulted in additional savings for the government.

DWP service delivery director Kenny Robertson said the enterprise agreement complements DWP's "strategic direction" regarding its desktop operations and that Microsoft has been "in the trenches with us as we prepare the technical aspects to migrate our estate to XP."

Steve Ranger of Silicon.com reported from London.