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National Government agencies to Microsoft forcing down

October 11th, 2011 Leave a comment Go to comments

Richard Granger is responsible for the United Kingdom national health system (English National Health Service, abbreviated as NHS) billions of dollars worth of technological transformation project, customers like him make Microsoft (Microsoft Corp., MSFT) headaches.

Should negotiations when a new license agreement with Microsoft, Granger was started with the Sun computer company (Sun Microsystems Inc., also known as: Sun Micro) make contact to discuss Linux-based software is installed on computers in the institution. Him subsequently announced, by using complimentary or low cost Linux open source programs save money can make NHS patients with better services.

Granger uses this hard means prove to be very effective. Microsoft finally agreed to sharp price cuts.

Announced late last year of the agreement, the NHS will pay Microsoft for about 500 million pounds (US $ 932 million) to update their Windows license for a period of 9 years. The people said, it’s better than the old contract low price about 40%. Microsoft will provide an extra 40 million pounds worth of technical training and other resources in order to develop a software for NHS user interface.

Granger example showed the Government institutions and the municipal sector bargaining with Microsoft’s attitude hardened because, as one of the most reliable Microsoft customer base over the years, they are using open source software to Microsoft prices, so that the heavy cuts in technology spending.

Microsoft in new fields such as computer games and MSN online business struggled amid this trend poses a threat to Microsoft’s highly profitable core software business.

While an increasing number of enterprises, particularly banking and retailing, are turning to open source software, but they are generally low key, but without a public sector-specific ideologies. In Linux, the birthplace of Europe, the left-wing government officials regularly to this United States software giant threat warning.

From Brazil to Israel, from China to Japan Governments are increasingly using open source software, or as a Microsoft forcing down the chips. For example, Brazil city by way of legislation, provisions to preference or forcing the selection of open source software.

According to people familiar with Microsoft’s sources, the Government Agency customers accounted for 10% per cent of the company’s revenue, Microsoft cannot afford this type of customer churn as a result of combat.

Prices for its products, and security than open source alternatives, Microsoft denied it. The company said, different from the development source code software provider, it guarantees that the clients will not be involved in patent and other IP-related lawsuits. Some Linux users have in this regard are prosecuted. In addition, Microsoft also began to government clients part disclose previously confidential source code in order to meet the challenges of open source software.

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News source: United States English edition of the Forbes
Translation and arrangement: Catfish

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