From: "Frederick Noronha (FN)" 

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Munich breaks with Windows for Linux By Stephen Shankland CNET News.com
May 28, 2003, 12:28 PM PT

The local government in Munich, Germany, has voted to move 14,000 computers
from Microsoft's Windows to the rival Linux operating system, despite
efforts by the software giant to hang onto the multimillion-dollar
contract.

The council of Germany's third-largest city said Wednesday that it will
spend about 30 million euros, or $35 million, on the transition. In
addition to switching operating systems, the city plans to move from
Microsoft's Office productivity software to the open-source OpenOffice.

Microsoft had fought hard to retain the business, offering deals and
discounts, with CEO Steve Ballmer interrupting a ski vacation in
Switzerland to pay a personal visit to Munich's mayor about the issue, the
city said.

Munich, faced with the end of support for its Windows NT computers, pitted
Linux and OpenOffice against Microsoft products, the council said in a
statement. That competition helped lower prices, it said.

With Linux, the city has more freedom from reliance on products from a
single company, it said. Boris Schwartz, one of Munich's councilors, said
in a statement that Munich's move breaches Microsoft's "monopoly-like
position."

The deal also is notable because it involves desktop computers. Until now,
Linux has been popular chiefly on more-powerful networked server computers,
where Microsoft doesn't have as strong a presence in the market.

Though Munich doesn't intend to select open-source technology providers
until the first quarter of 2004, computer maker IBM and Linux seller SuSE
helped Munich evaluate the move and are candidates, the companies said.

"I consider our position as quite good, because we (have been) heavily
involved from the beginning," said SuSE Chief Executive Richard Seibt
in an interview Wednesday. SuSE and IBM also have sold Linux products to
the governments of Schwaebisch Hall and Dortmund in Germany.

Microsoft isn't throwing in the towel, however. "With respect to the
Munich administration, we will continue to work closely with them to
explore additional programs and offerings that best meet the needs of
Munich's citizens and businesses," the company said in a statement.

The software giant pointed to a new agreement it had signed with Frankfurt,
under which the German city joined a Microsoft program that offered
products to German local governments under "inexpensive and flexible
terms." Frankfurt Mayor Petra Roth said in a statement that the city
will save money as a result of the deal.

Some governments enjoy the fact that they can see all the source code
underlying Linux, as it reassures them that, among other things, there is
no secret code that could compromise their systems. Microsoft has countered
this with a carefully controlled code-sharing process of its own.

Germany, the country in which SuSE has its headquarters, has been more
eager than most countries to embrace Linux. The federal government there is
funding some improvements to the KDE desktop and user interface software
for Linux, for example, and almost a year ago, it signed a contract that
made it easier for smaller German governments to buy Linux products.

http://zdnet.com.com/2100-1104_2-1010740.html

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