MSFT Microsoft Corporation

   DOW JONES NEWSWIRES 
 

Microsoft Corp. (MSFT) agreed to consolidate dozens of license agreements for various New York City government agencies into one pact and provide cloud-computing access, which New York's mayor said would save the city $50 million and increase collaboration among civil workers.

New York Mayor Michael Bloomberg and Microsoft Chief Executive Steve Ballmer unveiled the partnership Wednesday, calling it a first-of-its-kind collaboration.

The new arrangement will save the city $50 million over five years by consolidating the license agreements and charging for software based on use, Bloomberg said.

Microsoft also will provide access to its Internet-based computing services, known as cloud-computing, which will foster collaboration among city employees and allow agencies to share technology developments, according to a release.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com