New York City Sets Deal With Microsoft

Microsoft Corp. and New York City announced an agreement on Wednesday that will provide the city’s agencies with an array of computer services, including web-based programs and traditional desktop software.

The five-year deal consolidates previous agency-by-agency agreements under one contract with the tech giant. The new agreement is expected to save New York $50 million over the next five years.

“We need better collaborative tools and we need better access to technology,” said Stephen Goldsmith, deputy mayor of operations. “Yes, it’s a way that we save $50 million, but more importantly it adds a substantial building block and transforms the way we work.”

No contract has been signed yet. The final financial details are being hashed out and will be wrapped up before the end of the year, city officials said.

The deal is a coup for Microsoft which has been battling with Google Inc. to win contracts with local, state and federal government agencies. Those customers have been trying to cut costs by moving from software installed on their own computers to web-based programs.

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