The government is looking for a cheaper alternative to the three year licensing agreement signed with Microsoft in 2001.
The Ministry of Finance will not renew the agreement for the use of Microsoft products by government ministries, on the grounds that the price offered by Microsoft is too high. The ministry says cheaper alternatives are being examined.
Through the Accountant General, the Israeli government signed an umbrella agreement with Microsoft giving government ministries the right to use the company's products in return for annual payments. The products concerned were mainly the "Windows" operating system, and the "Office" applications package. The agreement was signed in 2001 and was for three years.
The Ministry of Finance said in response that, following an examination by its tenders committee for information systems and computing, it was unanimously decided to inform Microsoft that the government did not intend to renew the agreement for a further three years. The ministry cited three main reasons for the decision: the agreement's structure, the price of Microsoft's software licenses, and unnecessary software upgrades.
Published by Globes [online] - www.globes.co.il - on October 13, 2003