AWS hosting for Britain's Home Office, one department, could cost £1.06 billion, IT Pro reported. That is 2.3 times its 2023 deal.
The Home Office's pipeline notice of 30 October values a renewal of Amazon Web Services public cloud hosting at £1,057,945,209 including VAT, IT Pro reported on Thursday.
The current AWS contract, signed in 2023 for about £450 million, expires on 30 November 2026.
The department's 2020 AWS deal was £120 million, PublicTechnology reported, a ninefold rise in six years. A second notice plans £180.9 million for Microsoft Azure services, against a £30 million incumbent deal.
Both contracts are to be bid through lot 1a of the G-Cloud 15 framework, which lists about 90 suppliers; a tender notice is expected on 4 January. The AWS term is two years, with options to 2031.
The Home Office did not respond to IT Pro before publication. AWS referred questions to the department.
A pipeline value is a consumption estimate over the term, not an invoice. For the renewal on a CIO's own desk, the number to ask for is the usage forecast behind the price. The 2023 contract was awarded directly to AWS; this one goes through a framework lot. The two deals are not like for like: the new scope adds backups, the terms differ and the figure includes VAT.
Sources
Our file on AWS
- 2 Nov
AWS owner Amazon can borrow up to $80bn against the AI hardware it buys. Lenders get rights over some of that equipment.
- 1 Nov
Amazon's AWS sales grew 39% to almost $46 billion. Amazon's free cash flow was minus $42.4 billion over 12 months.
- 27 Oct
Amazon's CEO said AWS capacity for next year is largely sold. He said Amazon struggles to keep pace.
- 25 Oct
AWS announced $1 billion for engineers who build AI inside client firms. Gartner advises clients to plan the exit before they arrive.
- 15 Oct
AWS and Google's lobby priced EU cloud rules at €115bn. Brussels estimated €18bn.
For your next steering committee
- 1Ask when each major software contract renews and what notice period applies.
- 2Ask which price protections are written into the contract and which rest on a sales conversation.
- 3Ask what a price rise on that line would do to the run budget, and who would notice it first.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
