Agenda 01-17-23; 8-i - Microsoft Office 365 Contract and Approval of Budget Amendment #5-B

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2 The current version of Office installed on the majority of computers is over seven years old and will necessitate an upgrade in FY 2023-24 regardless of compliance status. The County traditionally has purchased individual perpetual Office licenses, i.e., employees can use the version purchased in perpetuity and where the support model degrades over time. The proposed Microsoft Office 365 model keeps all licensing and software versions in use up to date and in compliance with an annual subscription. Microsoft Office 365 is an evergreen cloud- based productivity suite. This subscription model includes version upgrades as they become available, as well as a host of other features not offered in the perpetual model. The proposed cost for the proposed model is $403,195.97. The past three years have seen a dramatic change in the way employees try to leverage use of the older software model. Remote meetings and cloud-based document sharing have moved into the necessary category once occupied solely by webmail. This represents a dramatic shift in the way Orange County employees collaborate and interact with data. The use model in place today seems to be growing in an upward trajectory and current licensing model cannot keep up. Microsoft tools for business intelligence have been bolted on to the existing system in order create a robust collaborative space for leaders and staff to look at complex datasets to model and illustrate business outcomes. The Microsoft Office 365 proposal natively integrates many of these somewhat disparate systems. Employees continue to ask for new ways to do business and Microsoft Office 365 meets many of those needs and scales well into the future, more so than the perpetual model that has been in place since 2006. The associated Microsoft Volume Licensing Enrollment Agreement was originated by the vendor in line with industry standards while also meeting policy requirements and legal sufficiency. The implementation costs for Office 365 are recommended to be funded with approval of Budget Amendment #5-B, which will utilize $403,195.97 of the County Capital Reserve Fund authorized in Budget Amendment #5-A (a separate item on this January 17, 2023 meeting agenda), and would transfer those funds to the County Capital Fund. This will amend the following Capital Ordinance: iT Capital Fund($403,196) - Project# 30007 Revenues for this project: Current FY 2022-23 FY 2022-23 FY 2022-23 Amendment Revised Grant Funding $37,343 $37,343 Financing Proceeds $14,195,923 $14,195,923 Appropriated Fund Balance $200,000 $200,000 Transfer from General Fund $2,822,135 $403,196 $3,225,331 Total Project Funding $17,255,401 $403,196 $17,658,597 Appropriated for this project: Current FY 2022-23 FY 2022-23 FY 2022-23 Amendment Revised IT Capital Project Expenditures $17,255,401 $403,196 $17,658,597 Total Costs $17,255,401 $403,196 $17,658,597