Dennco Plan Aims to Cut Michigan’s Dependence on Costly Microsoft Licensing in Long-Term Technology & Operations Costs
Local partnership proposal could keep data – and dollars – in Michigan as company awaits response from Governor’s Office
Saginaw, Mich. — November 17, 2025 — Dennco Holding Company, LLC has submitted a partnership concept to the State of Michigan that could reduce long-term technology spending by shifting select systems away from high-cost Microsoft hosting and licensing arrangements and into a Michigan-based infrastructure model.
Today, many of the State’s core services are hosted with Microsoft under enterprise agreements that require ongoing payments for cloud hosting, software licensing, and related services. Dennco’s proposal, the Dennco & State of Michigan Partnership Plan, outlines an alternative path: gradually moving targeted workloads to Dennco-operated infrastructure and lower-cost platforms, while maintaining security, reliability, and compliance.
Dennco is currently awaiting a response from the Governor’s Office and is prepared to engage in detailed discussions with state officials.
Where the Fiscal Savings Could Come From
The proposal focuses on long-term structural savings, not one-time cuts. Key potential savings areas include:
- Reduced dependency on Microsoft licensing: By transitioning appropriate services away from fully Microsoft-hosted environments, the State could:
- Lower recurring per-user and per-server license fees
- Reduce reliance on bundled cloud services that may be underutilized
- Gain more flexibility in how software and infrastructure are purchased and managed
- Michigan-based hosting instead of exclusively out-of-state cloud: Dennco operates and is expanding a data center footprint in Michigan. Under the plan, the State could:
- Host selected systems on infrastructure physically located in Michigan
- Keep a larger share of technology spending within the state economy
- Reduce certain long-term cloud hosting costs by using more efficient, tailored solutions
- Hybrid model using open-source and cost-optimized platforms: Where appropriate, Dennco would design solutions that:
- Incorporate open-source or lower-cost alternatives to proprietary software
- Optimize storage, compute, and licensing to avoid paying for unused capacity
- Allow gradual migration rather than risky “all at once” changes
- Local economic and workforce benefits: By centering operations in Northern Michigan, the plan aims to:
- Support local jobs in IT, support, and infrastructure
- Build long-term, in-state expertise around public sector technology
- Align fiscal savings with broader regional development goals
Commitment to Security, Compliance, and Transparency
Dennco emphasizes that any transition away from exclusive Microsoft hosting must be careful, measured, and fully accountable.
The proposal commits to:
- Security & compliance
- Meeting or exceeding applicable state and federal standards, including best practices for data protection, uptime, and incident response.
- Clear performance metrics
- Defining service levels, reporting, and measurable outcomes so state agencies can verify both reliability and cost savings.
- Phased, low-risk implementation
- Migrating systems in stages, starting with workloads that are best suited for cost-optimized or hybrid hosting, and only expanding when results are proven.
“Our goal is not to ‘rip and replace’ what the State already has,” said Dustin L. Bayn, CEO of Dennco Holding Company, LLC. “Our goal is to give Michigan an option: to own more of its infrastructure destiny, rely less on expensive Microsoft licensing, and keep more technology dollars working here in Michigan instead of flowing out of state.”
Waiting on the Governor’s Office
Dennco has transmitted the partnership concept to state leadership and is now waiting to hear back from the Governor’s Office.
“We understand the State must carefully evaluate any change that affects critical services,” Bayn said. “We’re ready to sit down with the Governor’s team and agency leaders, walk through the numbers, and show exactly how a Michigan-based model can reduce long-term costs while strengthening control, security, and local impact.”
As discussions develop, Dennco Holding Company will provide updates on its website to keep residents, partners, and stakeholders informed about the progress of the partnership proposal.
