Governments in Europe have made headlines in recent months for bold moves taken to step away from proprietary Microsoft platforms like Windows and Office 365. These transitions are motivated by a need for digital sovereignty, reduced vendor dependency, increased cost control, and improved data security. In this article, we’ll explore the background factors that led to the change, motivating factors, and what this means for companies.
In any free market, monopoly poses concerns. The software sector is no different, and concerns of big tech monopoly have been circling for years. Microsoft, like other US-based tech giants Google, Meta, Apple, Amazon, and OpenAI have consolidated global dominance as technology providers – used by nearly every country and person on the planet. Their monopoly indicates their market advantage: they provide some of the best technology and software in the world. But monopoly is not without its concerns.
When every individual and company is plugged into the Big Tech ecosystem, these companies have a direct influence on the world’s data, infrastructure, and operations. Governments, companies, and people are dependent on these corporations – dependent on their licensing metrics, their prices, their cancellation policies, and their operationality.
“U.S.-based companies like Google, Meta, Apple, Amazon, and Microsoft have become increasingly interwoven into Europe’s digital economy during the last ten years. But with their growing prominence has come increasing worry in Brussels about user privacy, monopolistic conduct, and the decline of Europe’s digital sovereignty.”
Consequently, Big Tech has been the target both of anti-trust lawsuits in the US, and policy measures in the EU to protect consumer interests, control their monopoly, and defend digital sovereignty. From the implementation of GDPR to the EU AI Act, and the recent case by the Federal Trade Commission against Adobe’s vague cancellation policies, regulators are pushing back against vendor lock-in.
Increased pressure from geopolitical tensions in the US and around the world have pushed some EU decision-makers over past the tipping point, as Denmark and Germany lead the change to open-source alternatives to Microsoft like Linux and LibreOffice.
EU member states have been investigating digital sovereignty for years, but the Trump administration is likely the catalyst that pushed them over the edge. CIO comments:
“Just a few weeks ago, Microsoft came under fire after the US company allegedly blocked the email account of Karim Khan, chief prosecutor at the International Criminal Court. The reason for this was an executive order sanctions decree by US President Donald Trump, who threatened penalties for anyone who supported Khan financially, materially, or technically. (Microsoft President Brad Smith has since denied that Microsoft cancelled Khan’s account, though a Microsoft representative did admit the account was disconnected.)”
The merging of the private and political in the United States has long been a concern, with Big Tech companies exerting notable influence on policy decisions, and political figures exerting similar influence on the decisions of major tech giants. There is perhaps no clearer indication of this interlinking of interests than the recent involvement of Elon Musk, a decidedly un-political figure, in the US Government. As his relationship with the United States president recently took a turn, the stock prices of Musk’s companies plummeted, with a total loss of $152bn of the value of Tesla alone. This highlights the reasons why democratic nations have always sought to prevent conflict of interest by mixing church and state – or in this case, state and commerce. Europe has reason to be wary of over-reliance on the US.
Denmark: Ministry of Digitalization
Open-source adoption in public agencies has expanded across Europe and Asia since the mid-2000s (5). However, Denmark’s recent open-source project is gaining attention around the world. Between June and November 2025, Denmark’s Ministry of Digital Affairs will be rolling out a transition from Microsoft to open-source platforms. Half the staff will migrate by August, with full implementation by autumn of 2025 (1). Commenting on the motivation for the migration, Danish digital minister Caroline Stage Olsen said, “we must never make ourselves so dependent on so few that we can no longer act freely. Too much public digital infrastructure is currently tied up with very few foreign suppliers. This makes us vulnerable.”
Cities like Copenhagen and Aarhus are also following suit. This move sets Denmark as a frontrunner in asserting technological independence in the European Union.
Germany: Schleswig-Holstein
In April 2024, Schleswig-Holstein also made a bold switch to open source, becoming “the first in Europe to completely ditch Microsoft tools like Teams, Word, Excel, and Outlook in public offices. Instead, the state is switching to open-source software like LibreOffice, Linux, and Open-Xchange to gain digital sovereignty and reduce reliance on U.S. tech giants. With 30,000 public workers already moving and 30,000 teachers to follow, the move aims to cut long-term costs and control data locally.”
The state developed detailed migration roadmaps, technical training modules, and community partnerships to facilitate the transition. Their focus was not only software replacement but creating a culture of digital empowerment within government IT teams, from daily operations to long-term data ownership.
France and Other European Nations
Other nations across the EU are also investigating and implementing new programs to support digital sovereignty. 11 French ministries install LibreOffice on 500,000 workstations. Italy’s Ministry of Defence has standardized on LibreOffice and ODF for 150,000 PCs. Toulouse saved approximately €1.8 million over three years by migrating 90% of its desktops to LibreOffice. And the city of Barcelona has invested heavily in open-source software as part of its broader digital strategy.
These examples show a clear pattern: governments are serious about reducing foreign dependencies in critical digital infrastructure.
Digital Sovereignty
Digital sovereignty is defined as “the right and ability of a state or region to independently manage its digital assets, infrastructure, and data without undue reliance on foreign entities or commercial suppliers.” By transitioning to open-source platforms, governments regain control over their digital infrastructure and their data, thus limiting their reliance on foreign vendors. This safeguards them from losing access to critical data and infrastructure controlled by foreign entities.
Danish audit committee Head Henrik Appel Esperson drove home the impact of dependency on foreign entities, stating “If we suddenly can’t send emails or communicate internally because of a political fallout, that’s a huge problem.” In times of heightened and ongoing geopolitical instability and increasing cyber threats, sovereignty is a national security imperative. (3)
Vendor Lock-In
Lock-in is a negative side-effect of monopoly that governments and companies feel alike. Under these conditions, technology providers retain the power to change license metrics, hike prices, and dictate tech roadmaps. Open-source software offers full auditability, internal development potential, and long-term control over licensing and features. It allows governments to decide their own pace of innovation without being tied to the pricing and licensing timelines of major vendors.
Cost Reduction
While the major drivers for EU governments relate to digital sovereignty, another drawback of monopoly and vendor lock-in are the astronomical cost increases that Microsoft continues to subject users to.
Total municipal total municipal spending on Microsoft in Copenhagen and Aarhus were estimated to have increased by 72% in just 5 short years, jumping from 313 million kroner in 2018 to 538 million kroner in 2023. This is consistent with data on the increasing cost of software in general, with Vertice calculating that the current rate of inflation for SaaS products is 495% higher than consumer inflation.
Even with volume discounts from Microsoft, the long-term savings from using LibreOffice and Linux are substantial. Licensing costs are replaced by investments in internal capability and support, which also creates local job opportunities and an ongoing value creation mechanism.
Interoperability and Open Standards
Adopting the OpenDocument Format (ODF) enhances interoperability, archival compatibility, and data integrity over time. Governments can ensure that public records remain accessible regardless of future vendor developments or platform changes.
Long-Term Sustainability and Real-World Risks
While the push against Big Tech monopoly has been ongoing for some time, it’s unclear whether digital sovereignty and open-source projects will have long-term sustainability for governments. Munich successfully migrated 12,600 desktops to Linux, saving €11.7 million, but political changes led to reversal. This highlights the importance of securing long-term policy commitments
However, Vienna, Toulouse, South Tyrol, Kerala, and various Norwegian municipalities demonstrate sustainable success with open-source transitions. Positive political sentiment, gradual rollouts, and robust implementation plans are crucial for sustaining long-term open-source strategies. It’s not just about technology but governance and continuity.
Digital sovereignty is not as significant a concern for most enterprises. Chances are that most companies will continue to use Microsoft products for many years to come. A total pivot just isn’t realistic.
However, there are lessons that can be drawn from the switch to open source. Vendor lock-in and its negative effects are alive and well across commercial IT environments. And most companies have no tools in place to retain control. While governments have used the switch to open source to mitigate some of the downsides, there are other strategies that companies can employ to manage their Microsoft environments better.
The Data Layer: If you don’t have precise data on number of licenses, users, and usage patterns across your organization, you’re on the back foot. Owning your organizational data using a SAM tool, or other software visibility tool is critical.
Optimization Assessment: Data provides a critical foundation for sovereignty, but without insight it’s just that: data. Develop deep expertise on vendor-specific licensing metrics, focusing on vendors where your total cost of ownership is highest. If you don’t have the time or resources for this, consider outsourcing to an independent advisory that specialises in your major vendors.
This vendor-specific licensing insight, combine with accurate data, surfaces optimization opportunities across your environment on where you can downsize, consolidate, cancel, and refine to save costs while maintaining compliance.
Commercial Negotiation: This is a crucial bot often overlooked piece of optimizing your software environment. Most SAM and ITAM managers are not trained in commercial negotiation, or if they are, they just don’t have insight into the benchmarking data necessary to generate leverage. Invest in upskilling or third-party assistance to prepare for every renewal negotiation with Microsoft.
At 2Data, we use these 3 pillars to help companies around the world optimize their Microsoft agreements and reduce contract costs by 32% on average (and often more). Our Microsoft Practice Director shares these exact strategies in his latest webinar, The Microsoft Negotiation Playbook. Get access here.
Governments are not just reacting to Microsoft’s pricing and licensing changes. They are proactively shaping a more autonomous, resilient, and cost-effective future through open-source adoption. With strong planning, adequate training, and political commitment, this transformation can define the next era of digital governance.
Open source is no longer a fringe option, but a core strategy for public digital infrastructure. Agencies that embrace it early can gain not only financial and operational efficiencies but also a stronger, more sovereign digital future. Now is the time for IT leaders to evaluate, experiment, and execute open-source migration strategies to future-proof public infrastructure.
This is also a clear signal for companies to take proactive steps to control their software environments. While the switch to open source may not be on the table, there are plenty of other strategies to mitigate the negative effects of vendor lock-in.
2Data is an independent software licensing advisory specializing in Microsoft, Oracle, SAP, Salesforce and IBM optimization. We help companies reduce contract costs, manage risk, and simplify their software licensing.
