Olswang and DLA Piper have advised on a major commercial contract in which the National Health Service (NHS) has renewed its IT agreement with software giant Microsoft.

Olswang acted for Microsoft, which renewed its largest custom licence agreement in the UK to provide software for up to 850,000 users in the NHS. Microsoft will now work with the NHS' IT procurement team, NHS Connecting for Health, to provide specific software for the health body.

Legal director Gillian Austin led the Olswang team for Microsoft while DLA Piper was brought in to advise NHS Connecting for Health under Leeds-based technology, media and communications partner Mark Vipan.

The agreement will provide the NHS with access to Microsoft desktop software, including anti-virus technology and the Windows Vista operating system. The software will be used for the day-to-day running of the NHS, including managing patient records and appointments booking.

The agreement is the renewal and modification of a licence that was originally signed in 2004 and will see Microsoft continue to provide services to the NHS for another three-year period. Under the agreement, the parties will have the option to renew the contract for a further three years in 2010.

Olswang has advised Microsoft several times in the past, recruiting former Microsoft lawyer Austin this summer to boost its links with the client.

Austin commented: "This deal is out of the ordinary for Microsoft because it is so large. It is strategically important for them because it covers so many users and such an important system."