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Schleswig-Holstein ditches Microsoft 365 in bold open-source overhaul

A radical tech rebellion or a cautionary tale? One German state’s break from Microsoft 365 exposes the highs—and painful lows—of going fully open-source.

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Schleswig-Holstein ditches Microsoft 365 in bold open-source overhaul

Schleswig-Holstein has switched its entire public administration to open-source software. The move aims to cut dependence on U.S. tech companies like Microsoft and secure digital independence. Officials claim the transition has already saved millions while improving control over data.

The northern German state began phasing out Microsoft products years ago. Email systems shifted from Microsoft to Open-Xchange, and Windows is being replaced by Linux. Last year alone, the government avoided buying 28,000 new Microsoft licences, saving around €15 million.

Digitalisation Minister Dirk Schrödter defended the decision, insisting the new systems perform exceptionally well. Yet the transition has not been smooth. Reports highlight issues like undelivered or misrouted emails, heavier court workloads due to IT gaps, and staff complaints about underperforming alternatives. Hamburg’s Interior Senator Andy Grote called Schleswig-Holstein’s approach 'bold' but stressed his city has no immediate plans to follow. He warned against relying too much on American IT providers like Microsoft, citing geopolitical risks. Grote singled out Palantir, a U.S. firm with government ties, as a potential threat due to possible support withdrawals or unauthorised data transfers. Hamburg currently does not use Microsoft 365 or Palantir’s software. Grote left the door open for future changes, noting that shifting global politics could force a rethink. For now, though, Hamburg remains cautious about abandoning established systems like Microsoft 365.

The switch has saved Schleswig-Holstein millions and reduced its reliance on foreign tech companies like Microsoft. However, technical problems and staff concerns show the challenges of moving away from commercial software like Microsoft 365. Other regions, like Hamburg, are watching closely but remain hesitant to make similar changes.

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