03 Dec 2001
Sources close to the UK government have said that it is unhappy with the cost implications of Microsoft's licensing changes, which could amount to an extra £60m a year.
vnunet.com's sister publication Computing has learned that the government is already considering alternative options should negotiations over a new licensing deal fall through.
Ministers are now in negotiations with Microsoft and want the same or better value for money as they get from current spending.
Microsoft refused to comment on the additional costs to the government, but Duncan Reid, Microsoft UK licensing manager, said: "We are in discussions with the Office of Government Commerce (OGC) and have submitted an initial proposal. We expect feedback soon."
Microsoft has already signed massive licensing deals with the NHS and Ministry of Defence. "We hope to provide similar benefits through the proposals we have submitted to the OGC," said Reid.
Computing revealed last week that local government user group the Society of IT Managers is discussing a huge licence deal to cover UK councils.
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