] The city of Munich said on Wednesday it would switch
] 14,000 computers from Microsoft's (nasdaq: MSFT - news -
] people) Windows operating system to rival Linux in a deal
] estimated to be worth tens of millions of euros.
]
]
] The decision is a blow to U.S. giant Microsoft, whose
] chief executive Steve Ballmer had personally campaigned
] for Microsoft's counter-offer to the city, based on
] Windows XP.
]
]
] Microsoft has created two funds to discount its products
] against the emerging Linux software, which is eating into
] its most profitable business.
]
]
] "This strategic decision makes Munich less dependent on
] one IT supplier and sets a trend towards more
] competition," Munich mayor Christian Ude said in a
] statement.
]
]
] Analysts said Munich's decision to choose open source
] software, which means Linux, was a breakthrough.
]
]
] "It is one of the largest desktop migrations to Linux
] ever seen," said Gartner Dataquest analyst Nikos Drakos
] in London.

Microsoft even underbid IBM/SUSE by $3m, and Munich still went for Linux. Interesting.

] The city of Munich said on Wednesday it would switch
] 14,000 computers from Microsoft's Windows operating
] system to rival Linux in a deal estimated to be worth
] tens of millions of euros.

] Media have reported that Microsoft's offer of about
] 27.3 million euros ($32.3 million) had been almost
] three million euros below that of the Linux competitor,
] but the city had still chosen Linux for strategic reasons.

If I had to venture a guess, there are three big reasons why Linux won here.. 1) It runs great on older hardware (why wants to buy new hardware if they don't have to?), 2) They did not expect to get such a good price from Microsoft again when upgrade time came around, and 3) They want to use products that put money in their local economy, not Redmond's.