Israel, scared off by Microsoft subscription deals, won’t renew Office licensing agreements

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According to a report from Reuters, Israel has been scared off by Microsoft’s subscription deals and won’t renew their Office licensing agreements. A would be doubling in price happens to be the main reason behind the decision, and Microsoft has yet to comment on the issue.

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Per the report, Israel’s Finance Ministry says that Microsoft is apparently trying to move the Isreali government from their licensing system where they own the software, to a subscription-based renting system. This change does not meet Israel’s needs and involves moving data to the cloud.

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The Isreali government apparently has been negotiating with Microsoft officials for a year, and a deal has not been met. Israel will opt to freeze existing license structures owned by government ministries and will use them without further payment.

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Under the current deal with Microsoft, Israel pays about $27 million a year for Office on the desktop, Windows, and server software being used across the government. The ministry issued a bold statement, saying “This will also encourage government ministries to re-examine their needs of using Microsoft technology or switch to other technology alternatives.”

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\n\nFurther reading: Israel, Microsoft, Office, Office 365

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