Over the next year San Francisco will transition 23,000 users to the system and has had 300 pilot employees using the hosted service for the past five months.
“San Francisco will pay Microsoft US$1.2 million a year or $6.50 per month per user,” said Jon Walton, CIO for the City and County of San Francisco. “It’s a significant cost savings to the city and was one of the key ways the department of technology was able to achieve the 20 percent budget reduction for this year which was a directive from the mayor,” he said.
“The city is currently operating seven e-mail systems, including two different Lotus Notes systems and five Exchange on-premise products. Maintaining those various systems was costly, in terms of supporting the hardware and software as well as management costs,” he said.
“Supporting multiple e-mail systems is common for governments,” said Shawn McCarthy, an analyst from IDC. “Often each department has its own e-mail system, making upgrading the software and maintaining patches inefficient. Having a common system across all agencies lets IT managers in government focus on what’s their core mission,” he said.
“Moving to the cloud will also help San Francisco more easily use the latest technologies and better handle disaster situations,” Walton said. His group hasn’t been as disaster-ready as he would like and moving to the cloud means that e-mail should remain functioning even if there’s a disaster in San Francisco, he said.
Microsoft beat out the competitors because San Francisco saw potential to expand its use, according to McCarthy. “We have a strategic vision for the city of where we want to be over the next five years and the Exchange solution fit very well in terms of where we’re going,” he said. For instance, the city currently uses Office and Sharepoint and could migrate that software to Microsoft’s cloud services as well, he said.