Israel capitulates, renews software licensing agreement with Microsoft after all

In August we reported that the Israeli Government has ended its software licensing agreement with Microsoft, complaining that Microsoft planned to double their costs and bully them into the cloud.

Now, three months later it appears the country has capitulated, as they have announced the renewal of the deal for another 4 years, apparently with much of the current contract left intact, according to Reuters.

In making the announcement, the Finance Ministry did not disclose financial details, but the ministry had secured ongoing support for on-premise software and perpetual licenses.

Under the previous deal Israel was paying Microsoft more than 100 million shekels ($27 million) for the procurement of Office desktop software, Windows and server software for ministries and government offices.

Microsoft has tried to move the government to Microsoft’s Office 365 subscription service which left the government concerned about data security and the potential for disruption of service under the software rental model.

The ministry said its new deal meets the government’s needs and maintains government spending.

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