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Scrape Timestamp (UTC): 2025-08-15 06:50:17.752

Source: https://www.theregister.com/2025/08/15/microsoft_debate_poll/

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Should UK.gov save money by looking for open source alternatives to Microsoft? You decide. As £9 billion MoU sparks debate about value for money, it's time to have your say. Register debate series It's a lot of money, £9 billion ($12 billion). Especially for a government which finds itself — for whatever reason — in a fiscal dead end. Microsoft in the public sector This debate series was prompted by our reporting on the recent UK government commitments to the tech giant. Wednesday's motion was for keeping Microsoft in the public sector. The debate continued with an opposing motion on Thursday, and today, Reg readers can have their say via the poll below. If you don't find an option that suits you, please weigh in on the comments platform below. If you're not yet a commenter, you can sign up here. Between a taxation rock, a spending hard place, and a giant boulder of debt, those in charge of government finances have little room for maneuver. Imagine, then, the idea that the UK public sector expects to spend around £9 billion on Microsoft products and services over five years under its current agreement. Some would argue that much of that proprietary software is available elsewhere, free and open source. The MoU signed with the Redmond giant last year is set to see £1.9 billion ($2.57 billion) spent under the arrangement during each of its years. To put that into perspective, the government's capital spending program for school building is expected to be £6.8 billion ($9.2 billion) in 2025-26. Alternatively, changes to winter fuel allowance payments to pensioners, which prompted a volley of criticism from all sides, were set to save just £1.4 billion ($1.9 billion) a year when they were first announced. The government says the Strategic Partnership Arrangement 2024 (SPA24) would offer "enhanced value across Microsoft's portfolio of products and services." Any tough negotiations are unlikely to do Microsoft any harm. Its revenue rose 18 percent to $76.4 billion in the most recent quarter, while net margins are sustained at about 36 percent and have not dipped under 30 percent in more than five years. Revenue growth and margins together are propelling the company's staggering valuation of more than $3.5 trillion. The Register has heard from those advocating a FOSS alternative to Microsoft, and from those who think the public sector needs to improve its buying, but should stick with the Redmond giant, and those who feel a better balance between proprietary and FOSS would help get value for money. But what do you think? JavaScript Disabled Please Enable JavaScript to use this feature. JavaScript Disabled

Daily Brief Summary

MISCELLANEOUS // UK Government Faces Debate Over £9 Billion Microsoft Spending

The UK government plans to allocate £9 billion over five years on Microsoft products, sparking a debate on fiscal responsibility and potential open-source alternatives.

The Strategic Partnership Arrangement 2024 aims to deliver enhanced value through Microsoft's product portfolio, yet critics question the cost-effectiveness compared to free and open-source software (FOSS).

Microsoft's financial performance remains robust, with recent quarterly revenue increasing by 18% to $76.4 billion and maintaining high net margins, raising concerns about negotiation leverage.

Comparisons reveal the spending commitment rivals significant public sector expenditures, such as school building programs and winter fuel allowance adjustments, highlighting the scale of investment.

Advocates for FOSS suggest potential savings and flexibility, while others argue for maintaining Microsoft's established infrastructure to ensure continuity and reliability in public services.

The discussion reflects broader considerations of technology procurement strategies, balancing innovation, cost, and operational efficiency in government IT investments.