CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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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
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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 J...
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