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Israel refuses software of Microsoft because of growth of cost of products twice

Customers: Ministry of Finance of Israel

Government and social institutions

Contractors: Microsoft
Product: Microsoft Office
Second product: Microsoft Windows

Project date: 2017/04

In August, 2018 the Israeli government announced termination of the license agreement with Microsoft as new conditions assume value addition of products of the company twice.

The usage contract of the different software for desktop computers between Microsoft and the authorities of Israel expires at the end of 2018. It is not going to prolong it, declared in the Ministry of Finance of Israel.

Israel refuses software of Microsoft because of growth of cost of products twice

According to department, Microsoft tries to translate Israel from the system of licensing when the buyer owns software and can use it at discretion, to the subscription scheme which is similar to lease. Within these changes data move to a cloud that does not conform to requirements of the government.

Within a year negotiations on an occasion of preserving of the scheme of licensing were conducted, but they came to the end fruitlessly. As a result Israel refused cooperation and hopes to freeze the existing license structure that the ministries could free of charge continue to use products of Microsoft without the right to updating.

At the same time the Israeli Ministry of Finance also urged governmental bodies to review the needs for technologies of Microsoft or to pass to alternative developments which implementation will be encouraged.

Within the license agreement signed in 2013 and prolonged in the 2016th Israel annually paid to Microsoft more than 100 million shekels (about $27 million) for use of packets of Microsoft Office, operating systems of Windows and server solutions by bodies of the government.[1]

According to the Haaretz edition with reference to industry sources, the government of Israel will hardly break off the long-term relations with Microsoft, and the statement of the Ministry of Finance is a tactical step rather to convince corporation to improve conditions. Especially similar attempts already were. In 2003 the Ministry of Finance expressed the intentions not to prolong the contract with Microsoft, but did not keep the promise.

In August, 2018 in the ministry reported that are ready to renew the contract with Microsoft if the company fulfills the requirements. Microsoft refused to give comments about a situation in Israel on requests of media.

At the same time one of interlocutors told that software of Microsoft can remain only on personal computers of officials as, for example, in a case with servers process of transition to the open source software already began.

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More and more state servers begin to work at Linux and other products Open Source. Among them — a content management system of Drupal and Joomla — noted a source.
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In 2018 the department of Government ICT Authority supervising the market of information and communication technologies in Israel declared plans to refuse gradually products of Microsoft for benefit of the open source. This step will allow independent developers to create applications and to improve services by request of state agencies and also to reveal shortcomings of a program code, vulnerability and risks of cyber attacks. Besides, transition to developments of Open Source will allow small state agencies to get access to the tools developed by forces of the large ministries with limited IT budgets notes Haaretz.

The dependence of Israel on Microsoft is a subject of heated debates in the country long ago. Critics claim that the government in vain overpays and allows one IT company to dominate in public sector.

In 2010 the government committee studied an opportunity to use alternative to software, but declared the post of the Deputy Minister of Finance Tal Haramati (Tal Haramati) holding then lack of "qualitative alternatives" to products of Microsoft.

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