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NHS agrees discount with Microsoft to save ¡ê330m on software over nine years
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     The NHS in England has agreed a discounted price with the computer company Microsoft for renewing its licence to use the company’s desktop software, the health minister announced last week.

    Under the new arrangement the NHS will be able to use up to 900 000 licences rather than the current 500 000, allowing the software to be used on more desktop and laptop computers at no extra cost. The licences will be held on a perpetual basis rather than being renewed annually. The arrangement will last for nine years, with break points at three year intervals to allow for renegotiation if unpredicted changes occur.

    Announcing the agreement the health minister John Hutton estimated that, compared with the cost if additional licences had had to be purchased, it would save ?12m ($210m; €160m) over the next three years and more than ?30m over the length of the whole contract.

    Richard Granger, director general of the national programme for information technology in the NHS, said: "The NHS is in a uniquely strong position as an IT customer, currently the largest procurer of IT services in the world ?Extremely favourable terms and conditions for the NHS have been secured."

    Microsoft has also committed to ?0m worth of research and development under the agreement, with the aim of developing systems to allow software from independent vendors to work with NHS specific computer systems to bring uniformity to the various clinical systems used across the NHS. The first version of the health specific user interface is expected to be available early next year. Microsoft is also developing customised versions of Office and Windows software to create a "consistent look and feel" to NHS computer users.

    Mr Granger said: "This is a major investment by Microsoft to help develop a common look and feel of all clinical applications to improve patient care and safety across the NHS. This will speed up the process of dealing with patients and reduce the risks of unfamiliarity of different systems."

    He added: "This single interface for health could benefit the NHS financially, as we have an agreement that exploitation of the interface around the world by Microsoft would result in the NHS receiving a share of the licensing fees."(London Susan Mayor)