CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Cooperative Procurement 26-142, VMware Annual Maintenance Renewal, to The Redesign Group for an amount not to exceed $1,441,170 and for a three-year term
body
DEPARTMENT: Information Technology
SUBMITTED BY: Jacqueline Nguyen, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Both the Electric Utility and the Information Technology (IT) Department have standardized using VMware to create a virtual server infrastructure for the City. Specifically, core services such as the automated metering infrastructure (AMI), meter data management, load control management, network management systems, enterprise business applications, and Smart Grid systems use virtual servers.
This type of infrastructure reduces capital costs by decreasing the number of physical servers and uses server hardware more efficiently by running multiple virtual machines on the same piece of hardware. The virtualized server infrastructure also reduces operating costs and enhances the resiliency of overall technology operations.
DISCUSSION:
Since VMware was acquired by Broadcom in 2023 prices have significantly increased every year. This is a widespread market reality that is not unique to the City of Naperville. With limited alternatives, and the disruptive nature of switching vendors for such an embedded platform, customers are left with few options. The IT Department is researching opportunities, but finding and implementing an alternative to VMware is expected to take several years. In the short term, staff has negotiated a small price concession.
This procurement is for renewal of existing VMware software licenses and anticipated growth for both IT and the Electric Utility.
Staff has identified an approved cooperative contract, OMNIA - Software Solutions and Services (Region 4 ESC) Contract R240303, through The Redesign Group for the procurement of the VMware Renewal.
The term will be from June 22, 2026, through June 21, 2029.
FISCAL IMPACT:
CIP#: N/A
Renewal cost for the VMWare Software service is expensed to the Software and Hardware Maintenance account listed below. A total of $304,421 was budgeted for this service in 2026, $82,500 in the Electric Utility Fund and $221,921 in the General Fund. The 2026 renewal amount of $480,390 exceeds the amount budgeted by $175,969. Staff will monitor the IT budget and adjust other expenditures, if necessary, to accommodate this increase. Future years will be budgeted accordingly.
|
Account Number |
Fund Description |
Total Budget Amount |
|
16101100-531312 |
General Fund |
$3,970,254 |
|
40331300-531312 |
Electric Utility Fund |
$1,469,450 |