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SUBJECT
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Consideration to approve the renewal of licenses from Microsoft Inc. for the city-wide use of Microsoft Office 365 productivity, collaboration, and communications suite, a cloud-based solution. The renewal also includes Microsoft SQL Server and Microsoft Server licensing for the Bridge system in the amount of $132,318.62. They are renewed, through SHI Government Solutions, a Microsoft partner, for a total amount of $1,162,572.50, under DIR contract #DIR-CPO-5237. Funding is available in the Information Technology Fund and Bridge Fund.
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PREVIOUS COUNCIL ACTION
Year two was approved February 2026.
BACKGROUND
In May 2025, the City of Laredo engaged SHI International Corp. to support a phased migration from the City’s on-premises Microsoft Exchange environment to Microsoft Exchange Online. The initial year of the project focused on assessment, planning, and configuration of the new cloud-based environment to ensure security, continuity of operations, and minimal disruption to City services. In September 2026, the City completed the migration of all mailboxes, and upgrades to user accounts. In November, the current Microsoft Tenant will be renewed.
The licenses include:
2650 licenses (2,300 user mailboxes and 180 resource mailboxes)
Licenses for additional support for Windows Servers
Microsoft SQL Server licenses
This also includes the conversion of accounts from O365 to M365, which includes access to user and device management tools, along with more collaboration tools. This is the next phase of the migration, which allows Information Services and Telecommunications to manage devices and users more efficiently. Additionally, Microsoft Server and Microsoft SQL Server licenses used for the Bridge systems software solutions are included in this contract as well.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends approval.
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Fiscal Impact
Fiscal Year: 2027
Budgeted Y/N?: Y
Source of Funds: ...
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