Gov't IT spending seen as key to building Europe's tech ecosystem

"The German federal government spends €481 million on Microsoft licenses annually, a figure revealed in a response to a recent written inquiry by Rebecca Lenhard, a member of German Parliament representing the Green Party. That's only the spending at a federal level, with the total amount across German states 'certainly even higher,' said Lenhard. 'It's a lot of money we are investing in one company that we are completely dependent on.'"

"The German state of Schleswig-Holstein is moving tens of thousands of employees from Microsoft apps Office, Windows and Exchange to open-source alternatives, for example, while Denmarks' Ministry of Digitalization has begun to phase out Office 365 in favor of LibreOffice. The French government recently announced plans to swap Microsoft Teams and Zoom for its own video conferencing platform for 200,000 employees - potentially saving €2 million a year in licensing costs."

"The recent surge in interest around European digital sovereignty is driven by a desire to reduce the use of non-European suppliers. Not all see it as a positive development. Several tech leaders recently voiced concerns about digital sovereignty strategies, which they claim could increase business costs and slow user adoption of digital technologies in the region, hampering productivity and competitiveness."

European organizations are increasingly reconsidering their reliance on US technology suppliers due to geopolitical and trade tensions. Public sector organizations lead this shift toward local tech providers. Germany's Schleswig-Holstein state migrates tens of thousands of employees from Microsoft Office, Windows, and Exchange to open-source alternatives. Denmark's Ministry of Digitalization phases out Office 365 for LibreOffice. France plans to replace Microsoft Teams and Zoom with its own video conferencing platform for 200,000 employees, potentially saving €2 million annually. However, the European public sector remains heavily dependent on US suppliers. Germany's federal government alone spends €481 million annually on Microsoft licenses, with total spending across German states significantly higher. This digital sovereignty movement aims to reduce non-European supplier dependency, though some tech leaders express concerns about increased costs and slower technology adoption.

Read at Computerworld