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Bavarian Coalition Clashes Over Microsoft 365 Licensing Plan

The finance minister insists the proposal is a cost-saving consolidation that keeps government data in state-run centers.

Overview

  • Digital Minister Fabian Mehring calls for an open-ended reassessment of the prospective Microsoft deal, citing changed geopolitical risks.
  • Finance Minister Albert Füracker rebukes Mehring, says talk of a new framework contract is wrong, and labels his remarks as near fake news.
  • The government’s concept seeks to consolidate existing licenses and standardize usage, with data hosted in Bavarian state data centers.
  • The plan envisions making centrally negotiated Microsoft 365 licenses available on an optional basis for municipalities, many of which already use Microsoft tools.
  • German companies and opposition parties warn of vendor lock-in, high long-term costs, and security risks, and the timeline for any agreement remains unresolved after an earlier target of end-2025.