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As a result of the agreement, Microsoft have consolidated existing short-term discounts into their ongoing pricing structure and introduced significant additional discounts into their pricing for schools. This new price band is achieved by aggregating the amount of Microsoft software purchased by schools nationwide and applying the relevant discounts to all schools regardless of size or number of software licences purchased.
Microsoft does not sell directly to customers, but uses a network of authorised resellers to distribute its software. Many local authorities purchase software on behalf of schools in their area in order to achieve the highest possible volume discounts. For schools that have previously been unable to access the most attractive pricing owing to the small volume of licences purchased, the agreement offers a route to prices based on nationally-aggregated volumes.
Under the Department’s Microsoft agreement, the supply chain and the relationship between the parties involved remain unchanged. Microsoft has introduced a price band that will be available to all schools in the UK, provided they can access an eligible master agreement, either through their local authority, or directly from a reseller. Purchasing consortia and other ‘aggregators’ can sometimes offer lower prices than purchasing directly from a reseller, but only where they themselves are enrolled under an eligible master agreement.
If you buy a new PC that comes with Microsoft windows software pre-installed, OEM (Original Equipment Manufacturer) licences, you will not see a reduction in the cost of these PCs as a result of the Department’s Microsoft agreement, as these OEM licences are the subject of worldwide legal agreements.
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