The government has signed a three-year agreement with Microsoft to \u201cstreamline cloud access\u201d for 98 federal agencies.\nThe whole-of-government volume sourcing agreement was negotiated through the Digital Transformation Agency, and will make Microsoft 365 more cost effective for adopters, Microsoft said.\n \nThe agreement renewal also creates a pathway for \u201caccelerated adoption\u201d ofMicrosoft AzureandDynamics 365.\n \nMore than 1,400 subsidised Azure training places will be made available to Australian Government IT workers, plus funding to support 100 new trainees in the Australian Capital Territory over the next two years.\n \nIt is the fourth iteration of the agreement, which starts this month and will expire in 2022.\n \n\u201cThis arrangement provides the tools to support agencies in their transition to a modern IT environment through the adoption of cloud-based services,\u201d saidMinister for Government Services, Stuart Robert in a statement this morning.\nMicrosoft said that as a result of the agreement, fewer than two per cent of the Commonwealth will remain on legacy on-premise desktop licenses.\nThe Microsoft deal follows a similar volume sourcing agreement between government and Amazon Web Services, which was signed last month.\nA string of similar agreements have been made with other tech vendors. In mid-2018 a whole-of-government purchasing deal was made withIBM worth an estimated $1 billion over its five-year lifespan. Canberra also has agreements with SAP and Concur.\nThe agreements mean agencies can achieve cost reductions through efficiencies of scale, rather than having separately agreed contracts.\nIt is mandatory for agencies to purchase \u2018Common Cloud Enrolment\u2019 products and services through the Digital Transformation Agency. Other products and services, such as server licensing, desktop applications and Azure offerings, need to be purchased through Data#3.\nData#3 is the sole provider for government agencies under the agreement.\nMicrosoft said the deal \u201copens up significant opportunities for Microsoft\u2019s partner community\u201d and that its impact would be \u201cprofound\u201d.\nMicrosoft has been busy repairing its relationship with partners after it announced plans to stop providing partners with internal use rights on products. The proposal was met with global uproar from the channel ecosystem, and rescinded earlier this week.\n\u201cWe are proud to have been a strategic partner of the Australian Government for many years, and I deeply appreciate the continued trust that this latest agreement signals,\u201d said Steven Worrall, managing director Microsoft Australia.\n\u201cIt is my strongly held opinion that for Australia to sustain its many years of economic success we need to work together to digitally transform the public and private sectors, injecting efficiencies, infusing intelligence, and ensuring inclusion,\u201d he added.