The UK public sector expects to spend £9 billion on Microsoft products and services under a five-year agreement. The strategic partnership arrangement entails an annual expenditure of £1.9 billion. Comparatively, the government's school building capital budget is projected at £6.8 billion for 2025-26. Some experts argue for the exploration of free open-source software (FOSS) alternatives to save taxpayer money. Microsoft's recent revenue growth and stable profit margins indicate financial strength, complicating negotiations for better public sector deals.
The UK public sector is set to spend around £9 billion on Microsoft products over five years under the current strategic partnership agreement, raising concerns about the fiscal implications.
The government's capital spending program for school building is projected to be £6.8 billion in 2025-26, showcasing the magnitude of the spending on Microsoft software.
Critics question the need for this level of expenditure on proprietary software given the availability of free and open-source alternatives.
Microsoft's revenue rose 18 percent to $76.4 billion recently, indicating strong financial health and a lack of urgency in negotiating better terms for government contracts.
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