] 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. Forbes.com: UPDATE 2-Microsoft loses city of Munich deal to Linux |