The NATO Consultation, Command and Control Agency (NC3A) General Manager Dec. 10 signed a new Enterprise Agreement with Microsoft [MSFT], effective Jan. 1, replacing the contract that expired Dec. 31.

NC3A negotiated the new Enterprise Agreement with Microsoft together with three other NATO entities, NATO Communications and Innformation Systems Services Agency (NCSA), NATO HQ International Staff and NATO Maintenance and Supply Agency (NAMSA) which also will sign the agreement.

This is a first in the NATO environment, and will allow the Alliance to achieve significant cost-savings, the NC3A agency said in a statement.

The new agreement also offers flexibility. The agreement covers a five-year period with a breakpoint after three years. The breakpoint was inserted to provide NATO with the flexibility to step out of the contract or continue for a further two years at the same price without re-negotiating the price and terms and conditions.

The new Enterprise Agreement will include such things as the NATO Desktop licenses as well as software assurance under a Microsoft Premier Support Agreement.