TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Steven Scardina, Information Technology Manager
1. SUBJECT
title
Authorize purchase increase of software maintenance and network switches from Sidepath, Inc.
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2. SUMMARY
VMware software licensing has increased substantially this year necessitating a request for an increase to a prior Council approved purchase. A purchase increase for network switches is also requested.
3. RECOMMENDED ACTION
recommendation
Approve the purchase increase of software licensing and hardware from Sidepath, Inc. for $47,249.10.
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4. FISCAL IMPACT
The expense for this purchase increase is $47,249.10 and will be funded through Information Systems Operations (780) and Computer Replacement (790):
780.1601.53915.00000 Annual Software License and Maintenance $28,360.29
790.1601.56033.20339 CIP - Network Refresh $18,888.81
5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology
6. DISCUSSION AND BACKGROUND
On November 12, 2024, the City Council approved the purchase of various annual hardware and software maintenances from Sidepath, Inc. The prior approval included VMware licensing estimated at that time to cost $44,531.87.
Broadcom purchased VMware in November 2023. Since that time, Broadcom's licensing model and related costs have increased dramatically. For perspective reference, prior to the Broadcom' purchase of VMware, for FY23 the City's cost for the VMware licensing was $18,461. The first Broadcom cost increase effect to the City occurred in FY24 with a net cost of $40,484. For FY25, Sidepath provided an estimate of $44,531.87. However, Broadcom once again altered their licensing structure and related costs resulting in an increase to $72,892.16. The Information Technology department can consider a virtualization product alternative such as Microsoft's HyperV. However, that effort is a major technological c...
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