Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH OARNET FOR THE LICENSING OF VMWARE SOFTWARE FOR THE NEXT FIVE YEARS AND DECLARING AN EMERGENCY.
Brief Description: This Resolution is for approval to enter into an agreement with OARnet to allow the City of Hudson to fix costs for the annual renewal of VMWare licensing for the next five-years.
Body
Legislative History
None
Purpose & Explanation
The purpose of this resolution is to authorize our City Manager to approve a 5-year contract with OARnet-a trusted partner in Ohio’s technology landscape-for the renewal of VMWare licensing.
Background:
• VMWare: VMWare is a leading provider of virtualization software. It plays a crucial role in our city’s IT infrastructure, supporting essential functions such as servers, databases, and our phone system.
• Pricing Changes: Recently, VMWare underwent an acquisition by Broadcom, resulting in adjustments to its pricing structure.
• OARnet Partnership: For several years, the City of Hudson has procured VMWare licensing through OARnet. This strategic collaboration has allowed us to benefit from significant price discounts negotiated at the state level.
OARnet and the Ohio Technology Consortium:
• OARnet: OARnet, a division of the Ohio Department of Higher Education’s Ohio Technology Consortium, serves as our regional research and education network. Their extensive fiber-optic backbone spans over 5,500 miles, providing high-speed internet connectivity and advanced technology services.
• Negotiations: After months of negotiations between OARnet and Broadcom, we have received the final pricing details from OARnet.
This resolution would allow the City Manager to secure the best possible terms for VMWare licensing, ensuring the continued efficiency and reliability of our IT systems.
Here is a breakdown of how the costs will be allocated over the next 5-years:
Year 1: $9,922.88
Year 2: $10,943.04
Year 3: $12,000.64
Year 4: $13,043.84
Year 5: $14,122.56
The cost for this purchase agreement over the next 5-years will be: $60,032.96
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
Competitively bid and advertised for three consecutive weeks; bid tab attached: [Yes/No/NA])
X Joint or Cooperative Purchase Program
Professional Services
Other [provide explanation]
Fiscal Impact
X Currently Budgeted (Account ##101-7510)
Supplemental Appropriation Required
Appropriation Not Required.
Does this legislation require use of an emergency clause?
X Yes - Due to the time taken by OARnet and Broadcom to negotiate pricing, the City’s licensing window has expired. We would like to get this licensing and maintenance contract back in-place ASAP.
No
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution authorizing the City Manager to enter into a contract with OARnet.
Submitted by,
Thomas J. Sheridan, City Manager
Paul Leedham, CIO - IT Director