New York, May 29: In a setback to Microsoft, the local government in Munich, Germany, has voted to move its 14,000 computers from Microsoft Windows to the rival Linux Operating System despite all effort by the software giant to hang onto multimillion dollar contract. The council of Germany's third-largest city said yesterday 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 open office.

Microsoft, the online Cnet specialising in technical news said, 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.
Munich pitted Linux and open office 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.

The deal also is notable, Cnet said, 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, it added.

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.


Bureau Report