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Government

City of New York

How NYC Has Saved $800M+ Over 25 Years of Software Management

$800M+ Cumulative Savings
25+ Years of Partnership
80+ Agencies Served
7 Vendors Managed
At a Glance
City of New York
Government · 300,000+ employees across 80+ agencies · New York, NY

Multiple mayors, multiple administrations — one constant partner delivering results. UMS has managed NYC's enterprise software portfolio across 80+ agencies for over 25 years, driving $800M+ in cumulative savings through centralized licensing, vendor negotiations, and audit defense. Recently signed a 6-year renewal — their longest commitment yet.

Products
Microsoft Enterprise Agreement · Microsoft 365 · Adobe ETLA · VMware ELA · Cisco Networking · Oracle · Dell TLA
Timeline
25+ year partnership (2000–present), with ongoing multi-vendor optimization
Services
Expert Leverage Against Major Vendors · Turn a Negative Audit into a Positive Outcome · Save 20-40% on Your Microsoft Renewal · Cut Cloud Waste Without Cutting Capabilities

The City of New York is the largest municipal government in the United States, with over 300,000 employees across 80+ agencies — from the NYPD and FDNY to the Department of Education and the Office of Technology and Innovation (OTI). Managing enterprise software at that scale means navigating thousands of contracts, dozens of publishers, and procurement cycles that span mayoral administrations.

UMS has been NYC’s software asset management partner for over 25 years, delivering more than $800 million in cumulative savings through centralized licensing strategy, vendor contract negotiation, and audit defense across Microsoft, Adobe, VMware, Cisco, Oracle, Dell, and other major publishers. David Burns has managed this account for close to 20 years, providing the continuity that keeps savings compounding across political cycles. The city recently signed a 6-year renewal agreement — their longest commitment in the history of the partnership.

The Challenge

NYC’s software estate grew organically over decades, with agencies independently purchasing licenses, negotiating renewals, and responding to vendor audits — often without visibility into what other agencies were doing. This created three compounding problems:

  • Fragmented purchasing — Agencies procured software independently, missing volume discounts and creating inconsistent licensing terms across the city. A single publisher might have dozens of separate agreements with different NYC entities, each negotiated in isolation.
  • Compliance exposure — Without centralized inventory, the city had no reliable way to know whether deployments matched entitlements. This made every vendor audit a potential multi-million-dollar liability — and vendors knew it.
  • Renewal blind spots — With hundreds of contracts across dozens of publishers, renewal deadlines were routinely missed or managed reactively, eliminating the city’s leverage to negotiate favorable terms.

The challenge wasn’t just cost — it was the lack of a unified operating model for software across the largest municipal government in the country.

How UMS Solved It

Step 1: Centralized Visibility UMS deployed its licenseITall platform to consolidate software inventory, entitlement data, and usage analytics across all city agencies. Quarterly data extractions from tools like SCCM, Remedy, and VMware vCenter are normalized into a single compliance dashboard — giving both OTI (formerly DoITT) and individual agencies a real-time view of their licensing positions. This shifted agency staff from spending 73% of their time on tactical data compilation to focusing on strategic decision-making.

Step 2: Microsoft Portfolio Optimization Microsoft is NYC’s largest software relationship, and UMS’s deepest area of impact. Over the life of the engagement, UMS has delivered $53M+ in documented Microsoft savings across multiple categories:

CategoryIssueUMS ActionImpact
Office Professional82,000+ desktops exceeded license allocationNegotiated step-up licensing vs. costly redeployment$23M risk avoided
Windows EnterpriseSuboptimal Software Assurance renewal timingStrategically timed renewals against purchase cycles$5.75M saved
SQL Server (DOC)Enterprise edition on video surveillance — massive over-licensingRestructured to Standard edition with blended model$6.5M avoided (from $5.5M down to <$1M)
Project & Visio2,500+ incorrect deployments; 3,000 additional licenses neededRight-sized deployments; $300K spend vs. $2.8M+ requirement$9.4M saved & avoided
Enterprise CALs67,000+ Exchange/SharePoint CALs needed at renewalConsolidated negotiation across agencies$5.5M avoided ($4.5M vs. $10M+)

Step 3: Multi-Vendor Contract Management Beyond Microsoft, UMS manages NYC’s full publisher portfolio — negotiating renewals, monitoring compliance, and identifying optimization opportunities across Adobe (ETLA renewals since 2015), VMware (ELA renewals with OMB-level review), Cisco (strategic sourcing with 5-year TCO modeling), Oracle, and Dell. Each vendor relationship is managed through the same centralized platform, ensuring the city never negotiates blind.

Step 4: Audit Defense When publishers audit NYC, UMS provides end-to-end audit defense — reconstructing entitlement evidence, controlling data disclosure sequences, and negotiating settlements grounded in technical fact rather than auditor assumptions.

AuditInitial ClaimFinal SettlementReduction
IBM$85M$12M86%
Open Text$2M$115K94%
Microsoft SPLA$1.6M<$500K~69%
Oracle Sales Audit$10MDeferred; self-remediatedAvoided

These outcomes aren’t just cost avoidance — they establish precedent and leverage for future vendor interactions.

Results

MetricImpact
Cumulative savings$800M+ over 25 years
Microsoft-specific savings$53M+ documented (savings, cost avoidance, risk avoidance)
Audit claims defended$98.6M in initial claims reduced by 85%+
Agencies served80+ across all city operations
Partnership duration25+ years across multiple administrations
Latest renewal6-year commitment — longest in partnership history

Key insight: The most valuable aspect of this engagement isn’t any single negotiation — it’s the compounding effect of institutional knowledge maintained over decades. UMS’s continuity across administrations means every renewal builds on the last, every audit defense strengthens future positioning, and every optimization is preserved rather than reset with the next political cycle.

What Makes This Work at Scale

  • Platform-driven governance — The licenseITall platform provides centralized compliance dashboards, renewal calendars, and agency-level accountability reporting across all publishers. This transforms software management from a fragmented procurement function into a city-wide strategic discipline.
  • Multi-vendor breadth — Managing Microsoft, Adobe, VMware, Cisco, Oracle, and Dell through a single partner eliminates the information silos that vendors exploit in negotiations. UMS sees the full picture; individual publishers only see their piece.
  • Continuity through transitions — The program has survived multiple mayoral administrations because it delivers measurable, recurring results that transcend political cycles. The 6-year renewal signals confidence that this model works regardless of who occupies City Hall.

See also: How a federal agency cut M365 spend by 39% in 2 months for a focused example of UMS’s Microsoft optimization methodology.

Frequently Asked Questions

Common questions about this engagement

How does UMS manage software for an organization as large as NYC?
UMS operates a centralized software asset management platform (licenseITall) that consolidates inventory, entitlement, and usage data across all 80+ city agencies. Quarterly extractions, normalization, and compliance dashboards give both DoITT and individual agencies real-time visibility into their licensing positions across every major publisher.
What vendors does UMS manage for NYC beyond Microsoft?
UMS manages the full enterprise software portfolio — Microsoft, Adobe, VMware, Cisco, Oracle, Dell, and others. Each vendor relationship includes contract negotiation, renewal management, compliance monitoring, and audit defense as needed.
How much can a large government organization save on software licensing?
NYC has saved $800M+ over 25 years. On Microsoft alone, UMS delivered over $53M in documented savings, cost avoidance, and risk avoidance. Savings vary by environment, but organizations with fragmented purchasing across many departments typically see the largest opportunities.
What happens when a software vendor initiates an audit?
UMS provides full audit defense — reconstructing entitlement evidence, controlling data disclosure, and negotiating from a position of technical expertise. For NYC, UMS reduced an $85M IBM audit claim to $12M (86% reduction), a $2M Open Text demand to $115K (94% reduction), and a $1.6M Microsoft SPLA finding to under $500K.
Does this kind of engagement survive leadership changes?
NYC's program has endured through multiple mayoral administrations because it is built on measurable, recurring savings — not political relationships. The recent 6-year renewal is the longest commitment in the partnership's history.
"UMS has been an invaluable partner in managing our software costs."
Adam Barsky
Adam Barsky
Former Chief Financial Officer, City of New York
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