Information technology services (ITS) director Mike Harte said its ''student desktop replacement project'' would mean students could access course materials and university software on their own computers using ''virtual desktop'' software.
This meant students would no longer need to use the university's computer labs to access its services and software, allowing it to reduce the number of computers it provided on campus, Mr Harte said.
The approval of the project comes after large changes in computer use and ownership by students since the university commissioned its student desktop system in 1990.
''At that time, only 14% of students owned their own computers and the computer labs, containing a fleet of university-owned computers, was the best way to support teaching and learning.
''There have since been significant changes in student ownership of laptops and other devices - 98% of students now own their own laptops, and students are now also more likely to own other devices that can also access the internet,'' he said.
Mr Harte said students would prefer being able to access course materials in their own time and space, and on their choice of device, rather than having to use a university-owned computer in a prescribed location. The reduction in demand for university-owned computers would also lead to savings on hardware for the university in the long term. The university would retain ''a number'' of computer labs on campus, he said.
The project was approved during the closed section of this month's university council meeting, but its budget remained commercially sensitive because tendering was not yet completed.
Otago University Students' Association president Francisco Hernandez said the changes would benefit students as long as the university provided enough computers for those who did not own laptops.
It would be more convenient for students to be able to access university services on their own computers, he said.
According to its divisional plan, the university's ITS employs 155 equivalent full-time employees and has an operating budget of $41.5 million.