Microsoft Corp, the world's biggest software maker, lost a contract to sell its Windows operating-system programs for 14,000 Munich government computers because the city is switching to rival Linux.
The conversion will begin next year, the city said in an e-mailed statement. The city didn't announce what company will be hired to make the change. Linux is freely distributed software, so developers can see and change the code and distribute the results.
Microsoft has identified Linux as one of the biggest threats to its sales. Chief Executive Steve Ballmer had lobbied German officials, including those in Munich, to use the company's programs. More than two dozen nations are considering proposals to promote or require the use of Linux in government offices.
The city's decision "sets a signal for more competition in the software market" and makes sure Munich doesn't have to rely on just one vendor, Mayor Christian Ude said in the statement.
International Business Machines Corp will work with German Linux-software maker SuSE AG to bid on the Munich contract, said Jim Stallings, IBM's general manager for Linux, in a statement.
Shares of Redmond, Washington-based Microsoft fell US$0.38 to US$24.41 at 4pm New York time in NASDAQ Stock Market trading.
The switch by Munich, Germany's third-largest city, may help determine software purchases by other regional governments.
Germany's Interior Ministry has agreements with Microsoft and IBM.
Agencies can decide which contract to use or to buy products from another company.
Last year, the German Interior Ministry signed an agreement with IBM that guarantees discounts on IBM's Linux-based computers for federal, state and local government agencies. Germany last month renegotiated a contract with Microsoft, securing lower prices without committing to exclusively buy its products.
"The agreements give all agencies the chance to implement Microsoft products at favorable prices without the requirement to exclusively use Microsoft products," said German Interior Minister Otto Schily in a statement last month.
Microsoft is still hoping to sell software to Munich. The company "will continue to work closely with [Munich] to explore additional programs and offerings that best meet the needs of Munich's citizens and businesses," spokesman Hans Juergen Croissant in a statement.
Microsoft provides lower-cost or free software to governments and schools that can't afford it through an initiative that began last year. The program also helps compete with Linux, which is distributed for free over the Internet or at low cost by companies such as Red Hat Inc and IBM, Microsoft said.
Windows runs more than 90 percent of personal computers. In the market for running server computers, Linux is forecast to grow faster than Windows.
The German city of Schwaebisch Hall, in the state of Baden-Wuerttemberg, also is replacing Microsoft programs with Linux.
Separately, the company said it won a contract with the city government of Frankfurt to use Microsoft's programs. Microsoft offered the city "inexpensive and flexible terms," including allowing municipal offices to pay for software in installments, said Microsoft spokeswoman Alex Mercer. Terms weren't disclosed.
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a