This article was reprinted from the 2002-2003 DAS Biennial Report.

Renegotiations to save millions
-- ITSD Business Services, July 2003

Renegotiated enterprise license agreements relating to the IBM mainframe platform are resulting in savings of approximately $1.5 million a year.

This savings, which is a result of reduced software maintenance costs, will be passed on to customer agencies through reduced rates.

Contracts for T-1 and DS-3 circuits also were renegotiated by IT Service Delivery during fiscal year 2003 for the next biennium.

The annual cost of DS-3 optic cable lines was reduced from $2,088,000 to $874,800, a savings of more than 58 percent. A DS-3 line has the capacity of 672 channels for voice and/or data.

In addition, the state's T-1 charges are being reduced from $450 a month to $400 a month, potentially saving the state more than $2.6 million annually. A T-1 line has the capacity for 24 voice or data channels.