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The Guardian: Microsoft Fights for Taxpayers' £100m

Dec 19, 2003, 17:00 (5 Talkback[s])
(Other stories by Michael Cross)

"Software group Microsoft is fighting to keep its business with the British government--worth £100m a year--in the face of a growing preference for 'free' open source software in public sector IT projects.

"Peter Gershon, head of the Treasury's Office of Government Commerce, has announced plans to re-open negotiations with the group over a bulk buying agreement signed in March 2002. The memorandum of understanding was expected to save £100m over three years, but government departments have been slower than expected in taking it up.

"Mr Gershon is now using competition from open source suppliers such as IBM and Sun to pressure Microsoft to improve its terms..."

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