Agenda Item: 11
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: May 13, 2025
SUBJECT: CONTRACT FOR VIRTUALIZATION SOFTWARE AND SUPPORT DEPARTMENT: Administrative Services
PRESENTER: Benny Ives
RECOMMENDED ACTION
City Council:
1. Approve the use of a “piggyback” agreement using Sourcewell contract # 121923-CDW with CDW Government, LLC for a total three-year contract amount not to exceed $136,000 for VMware software and support services.
2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.
BACKGROUND
The City of Santa Clarita (City) has been utilizing datacenter virtualization software, known as VMware, since 2007 to manage and administer all of the computer servers operating at the City Hall and Transit Maintenance Facility (TMF) datacenters.
VMware is the market leader in virtualization software, which allows a single, physical computer server to house upwards of 20 virtual servers. This technology was first introduced in the datacenter marketplace in 2001 and initiated a paradigm shift in the way datacenters are designed and managed due to the cost and management savings achieved by reducing the quantity of physical servers traditionally required. When first introduced, VMware was essentially free with an ongoing commitment only necessary for technical support.
Over the years, the cost of VMware’s technical support increased gradually. However, in November 2023 the cost of VMware increased exponentially, when it was acquired by Broadcom, which proceeded to change its licensing model and transitioned it to a subscription service. As a result of this acquisition, VMware’s associated licensing and technical support fees have increased by more than 200 percent.
In light of the significant cost increase, City staff began exploring alternative virtualization platforms; however, none of them have the breadth of features, most notably, automated failover capabilities to support a mirrored datacenter in the event of a disaster. Thus, until such time that alternative solutions develop this feature, VMware remains essential to the City’s datacenter operations.
The use of "piggyback" purchasing allows the City to place orders against a competitively awarded public agency contract. The City is utilizing Sourcewell Contract #121923-CDW, which was competitively solicited and awarded on March 13, 2024. This approach allows the City to leverage the terms and pricing of an existing agreement that satisfies procurement requirements.
City staff finds this Sourcewell contract awarded to CDW Government, LLC provides the most advantageous pricing to subscribe to three years of VMware's virtualization software and technical support for a total amount not to exceed $136,000.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The annual cost to support this contract will be available in expenditure accounts 1002200- 516101 (General Fund 100) in the amount of $25,000 and 7003700-518203 (Transit Fund 700) in the amount of $15,000 beginning in Fiscal Year 2025-26, contingent upon the appropriation of funds in the annual budget for such fiscal years.
ATTACHMENTS
Sourcewell Contract 121923-CDW (available in the City Clerk's Reading File)