The decision is a blow to U.S. giant Microsoft, whose chief
executive Steve Ballmer had personally campaigned for
Microsoft's counter-offer to the city, based on Windows XP (news - web sites).
Microsoft has created two funds to discount its products
against the emerging Linux software, which is eating into its
most profitable business.
"This strategic decision makes Munich less dependent on one
IT supplier and sets a trend toward more competition," Munich
mayor Christian Ude said in a statement.
Analysts said Munich's decision to choose open source
software, which means Linux, was a breakthrough.
"It is one of the largest desktop migrations to Linux ever
seen," said Gartner Dataquest analyst Nikos Drakos in London.
Linux suppliers welcomed the move by of one of Germany's
largest cities, where many of the country's biggest
corporations have their headquarters.
"You can compare this to the fall of the Berlin Wall," said
Richard Seibt, Chief Executive of Linux software provider Suse.
Suse is bidding for the Linux contract together with
International Business Machines Corp.
Linux is considered by many to be the only big rival to
Microsoft's Windows and can already be found on 15 percent of
all computers sold in Western Europe.
A Microsoft spokesman in Munich said his company was still
at hand if the city found that certain units could not switch
over to Linux. "Some applications do not run on Linux," he
said.
LINUX GROWING IN GERMANY
The Munich decision comes as the German government is
installing Linux throughout certain ministries and public
institutions.
In the northern state of Lower Saxony, 11,000 police
computers will be switched from Microsoft Windows to Linux from
next year, according to the interior ministry.
Companies and governments are increasingly opting for
Linux, written by Linus Torvalds (news - web sites) and further developed on the
Web with the help of thousands of volunteer programmers,
because it is a stable software and not controlled by just one
company.
Hundreds of companies distribute the software, charging
little or nothing for the core software, but taking fees on
modifications, services and maintenance.
IBM and Suse declined to give the value of the bids for
their Linux offerings.
Media have reported that Microsoft's offer of about 27.3
million euros ($32.3 million) had been almost three million
euros below that of the Linux competitor, but the city had
still chosen Linux for strategic reasons.
Microsoft confirmed it had offered discounts for the total
project, but declined to give details.
