CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 24-222, VMware Annual Maintenance Renewal, to Zones, LLC for an amount not to exceed $116,121.60, and for a one-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.
In July of 2023, the City Council approved the award of a three-year cooperative procurement for VMware licensing to Zones, LLC. After that approval, Zones, LLC informed the City that annual invoicing was not available for the three-year contract and that they would require the entire amount upfront for the three years, or the City could pay for annual licenses. The City paid for the first-year license.
VMware was acquired by Broadcom in late 2023, and Broadcom changed the licensing scheme and pricing of VMware. This has introduced complexities and delays for the entire industry and VMware customer community. This has now been resolved to the point where the City can renew its VMware licensing.
DISCUSSION:
This procurement is for VMware renewals of existing software and growth for both IT and the Electric Utility.
Staff has identified an approved cooperative contract, STATE OF ILLINOIS JPMC - VMware con...
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