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German State Adopts Open-Source Alternatives to Reduce Microsoft Dependency

Written by Craig Durr | Jun 26, 2025 2:00:00 PM

The Brief: Schleswig-Holstein, a northern German state, has announced its decision to phase out Microsoft programs and adopt open-source software as part of its strategy for digital sovereignty and cost-efficiency. Starting with public servants, the transition will involve replacing Microsoft tools like Word, Excel, and Teams with open-source alternatives such as LibreOffice, Open-Xchange, and eventually the Linux operating system. The state also plans to move data storage to a public, German-owned cloud system, reducing reliance on American tech companies. This move is expected to save tens of millions of euros in licensing fees while providing greater control over digital infrastructure.

Read full details of the announcement about Schleswig-Holstein's open-source initiative at france24.com.

Source: France24

Schleswig-Holstein's Move Away from Microsoft Software

Schleswig-Holstein has initiated a transition from Microsoft software to open-source alternatives, aiming to reduce its reliance on proprietary systems. The state’s decision impacts half of its 60,000 public servants and will expand to include 30,000 teachers in the coming years. Open-source programs such as LibreOffice are replacing Word and Excel, while Open-Xchange is taking over email and calendar functions previously handled by Outlook. The transition will culminate with the adoption of the Linux operating system, replacing Windows. This shift is part of a broader strategy to enhance digital sovereignty and control over data infrastructure, addressing growing concerns about dependency on foreign technology providers.

Addressing Digital Sovereignty Through Open-Source Solutions

The decision to move to open-source software is rooted in Schleswig-Holstein’s goal of achieving greater digital sovereignty. Through reducing its dependence on American technology companies, the state aims to ensure more control over its digital infrastructure and data storage. Digitalisation Minister Dirk Schroedter highlighted the geopolitical and economic implications of relying on foreign tech giants, particularly in light of global tensions and rising EU concerns about tech monopolies. Plans are also underway to transfer data storage to a German-owned cloud system. This shift underscores a commitment to prioritizing local infrastructure over reliance on external providers.

Economic Benefits of Transitioning to Open-Source Tools

The switch to open-source alternatives is expected to generate substantial cost savings for Schleswig-Holstein. Licensing fees for Microsoft products often include additional charges for updates and support, making them increasingly expensive for public administrations. Open-source software offers greater flexibility and eliminates recurring licensing costs, allowing the state to allocate resources more effectively. Initial estimates suggest the move could save tens of millions of euros. While upfront investments in training and system integration are necessary, the long-term financial benefits and improved adaptability of open-source tools make the transition economically viable.

Challenges and Broader Implications of the Shift

Transitioning to open-source software presents notable challenges, particularly in managing staff adaptation to new tools. Experts point out that without adequate training and support, the process may encounter notable disruptions. Schleswig-Holstein’s shift mirrors earlier attempts, such as Munich’s adoption of open-source systems in the 1990s, which faced difficulties including limited political backing and compatibility issues. While other examples, such as France’s gendarmerie and India’s Maya OS, illustrate varying degrees of success, the outcomes often depend on the specific context and implementation strategy. Schleswig-Holstein’s efforts may provide insights for governments exploring similar transitions, though the broader implications remain uncertain.

Evaluating the Impact of Schleswig-Holstein’s Open-Source Transition

Schleswig-Holstein’s decision to transition from Microsoft software to open-source alternatives reflects an effort to balance cost efficiency, data control, and digital sovereignty. Through replacing proprietary tools with solutions like LibreOffice and Linux, the state aims to reduce reliance on American tech companies and manage its infrastructure within local systems. The anticipated cost savings and flexibility of open-source software make it an attractive option, but the process is not without challenges. Staff adaptation, compatibility issues, and the need for sustained political and operational support underscore the complexity of such transitions.

The initiative aligns with broader trends across Europe, supported by policies like the EU’s “Interoperable Europe Act,” which encourage open-source adoption. Schleswig-Holstein’s approach, while not unprecedented, is being closely monitored as a potential model for other governments. The long-term outcomes will depend on the state’s ability to address initial disruptions and maintain commitment to its goals. Regardless of the final impact, this move offers valuable insights into the feasibility and implications of reducing dependency on dominant tech providers in public administration.