COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
SUBJECT:Title
Discussion and Action: Cooperative Purchase of VMware Server Licenses from Sterling Computers Corporation and Authorize Acceptance of the Broadcom Terms and Conditions for the City’s Virtual Server Licensing and Support (Jonathan Baskette)
Body
FUNDING SOURCE:
General Fund
PURPOSE:
To consider approval of the purchase of VMware Server Licenses and acceptance of the Broadcom Terms and Conditions allowing the City's virtual servers to be licensed and supported through Broadcom, Inc., and purchased from Sterling Computer Corporation, an authorized reseller of Broadcom, utilizing the Mohave Educational Services Cooperative Contract 22L-SCC-0121 (500220) in accordance with City Code § 3.10.010.3(A)(1) and 3.10.010.3(A)(18).
BACKGROUND:
Lake Havasu City has an extensive virtualized server environment using VMware software, a subsidiary of Broadcom, Inc. The City’s licensing agreement is up for renewal, so staff is requesting Council approval to purchase the annual license and enter into a new three-year agreement with Broadcom for continued support and licensing. The City’s licensing cost for VMware is $134,400 annually, plus applicable taxes. The Broadcom Terms and Conditions includes an indemnification clause.
COMMUNITY IMPACT:
Having a functioning server environment is critical to the City’s daily operations. Should the server not be licensed, the environment will go offline, and community-impacting services will be disrupted.
FISCAL IMPACT:
Funds in the amount of $134,400 per year, plus applicable taxes, are allocated and available in the Fiscal Year 2025-26 and the proposed Fiscal Year 2026-27 Administrative Services Department, Information Technology Division budgets within the General Fund.
ATTACHMENTS:
Sterling Quote Q-00744694 for 3-year VMware licensing
Broadcom Terms and Conditions
SUGGESTED MOTION:
I move to approve the cooperative purchase of VMware Server licenses from Sterling Computers Corporation for a three-year period in the amount of $403,200 plus applicable taxes and to accept the Terms and Conditions with Broadcom, Inc.