Microsoft Loses NZ Government Windows Deal

The New Zealand government hasn't renewed a lucrative software deal with Microsoft, meaning open source might be on the way.

Could the New Zealand government be going open source? That seems eminently possible after it failed to renew a software agreement with Microsoft for Windows. Talks between the company and the NZ State Services Commission ground to a halt once the Commission realized that "a formal agreement with Microsoft is no longer appropriate." The company couldn’t offer what government negotiators required in price, features, or roadmap, The Register reports.

"We didn’t feel we got the appropriate levels of benefit from the negotiations," a government spokesperson told Computerworld.

However, although it seems that the government will expand its use of open source, it’s still signed a procurement agreement with Microsoft, meaning agencies could purchase software on an opt-in basis, with price dependent on volume.