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#29 Schleswig-Holstein Says “Tschüss” to Microsoft: Germany’s Open-Source Power Move

#29 Schleswig-Holstein Says “Tschüss” to Microsoft: Germany’s Open-Source Power Move

In a move that might make Big Tech executives spill their artisanal oat milk, Schleswig-Holstein, Germany’s northernmost state, is breaking up with Microsoft. And not just a “we need space” kind of break – we’re talking full-blown deletion from contacts, social media, and shared cloud folders. The state is replacing Microsoft Windows, Office, Outlook, and Teams with Linux, LibreOffice, and other open-source alternatives.

Why the dramatic shift? One word: sovereignty. Well, also: cost savings, privacy, long-term control, and a touch of geopolitical realism. Schleswig-Holstein isn’t just going digital—it’s going independent.

What’s Happening?

By 2026, the state aims to migrate around 30,000 PCs from Microsoft to open-source platforms. About half of its 60,000 public servants are already partway through the transition, with the other half—including schoolteachers—set to follow.

Say goodbye to Word and Excel; say hello to LibreOffice. Outlook is being swapped for Open-Xchange, and Teams has been kicked out of the chat entirely. Even the Windows operating system is on the chopping block, to be replaced by Linux. And it’s not just the tools—they’re switching up the entire IT ecosystem, including email servers, file sharing, and internal communications.

The migration isn’t a hasty reboot. Schleswig-Holstein began pilot projects in 2023 and has focused on training staff and phasing in changes gradually. Unlike past rushed efforts (cough Munich cough), the state is prioritizing stability and usability.

The Why: Sovereignty, Savings & Self-Reliance

So why break away from a system that „works“? Because sometimes what works… works a little too well.

1. Digital Sovereignty

At the heart of this decision is a desire to control data and infrastructure without being at the mercy of a U.S. tech giant. In a world where U.S. laws like the CLOUD Act allow American companies to hand over data—even if it’s stored in Europe—that’s a problem. The GDPR may not love that, and neither do German officials.

Using open-source software allows Schleswig-Holstein to host services locally, audit the source code, and ensure compliance with EU law. No backdoors, no transatlantic surprises.

2. Money Talks

Microsoft licenses aren’t cheap—and they’re only getting pricier. The state expects to save tens of millions of euros over the years by not renewing software subscriptions. Instead, funds will go to support, training, and development—investments that benefit the local economy rather than Silicon Valley.

3. Flexibility & Control

With open-source, if the state needs a new feature or security fix, they can build or commission it. No waiting for Microsoft to maybe roll out an update next quarter. No vendor lock-in. Just flexibility.

4. Strategic Independence

Geopolitical tensions (yes, we’re looking at you, energy crisis and transatlantic disputes) have made European governments realize that dependence—even digital—is a vulnerability. Just as the EU is working to reduce reliance on Russian gas, Schleswig-Holstein wants to reduce reliance on U.S. software.

Déjà Vu: Denmark Did It Too

Schleswig-Holstein isn’t acting alone. Denmark recently made headlines by announcing its own plan to ditch Microsoft in public administration—starting with its Ministry of Digital Affairs and expanding to cities like Copenhagen and Aarhus.

The Danish motivations were nearly identical: data privacy, rising costs, overdependence on one vendor, and a desire to align with European values. Like Schleswig-Holstein, Denmark is testing LibreOffice, exploring Linux, and phasing out proprietary email tools.

However, Denmark’s approach is more cautious. The ministry is running a pilot and has said it will return to Microsoft if open-source tools cause too much disruption. Schleswig-Holstein, on the other hand, is all-in. There is no planned fallback, only forward momentum.

The key difference lies in scale and commitment. Denmark is moving a few hundred people. Schleswig-Holstein is moving tens of thousands. The German state isn’t just experimenting—it’s betting on open-source as the future of public sector IT.

The Legal and Technical Bumps

From a legal perspective, Schleswig-Holstein’s move is deeply tied to the GDPR and Europe’s data protection values. Microsoft, like many U.S.-based tech firms, has struggled to fully comply with GDPR because of its obligations under U.S. law. That’s made many European regulators uneasy—especially after a wave of warnings from data protection authorities about tools like Microsoft 365.

By migrating to self-hosted, auditable open-source platforms, Schleswig-Holstein is taking the legally safer route. Data stays in Europe, is managed by European entities, and isn’t subject to conflicting foreign laws.

There’s also growing political support for such transitions. The Interoperable Europe Act, passed by the EU in 2024, encourages public administrations to adopt open-source software and share their solutions. The “Public Money, Public Code” principle—which argues that taxpayer-funded software should be open and reusable—is gaining traction in Germany and beyond.

This shift also opens up a host of legal and logistical questions. How do contracts change when software isn’t tied to one vendor? How do procurement processes adapt? How do governments ensure interoperability with systems still running on proprietary software? These are real challenges, but they are also opportunities to rethink outdated legal frameworks and align them with modern, flexible IT practices.

The Bigger Picture: Could This Spark a Trend?

If Schleswig-Holstein’s migration succeeds, it could trigger a digital domino effect across Germany—and even the broader EU. Other German states are already watching closely. If the state manages to maintain productivity, cut costs, and comply with EU law more effectively, it will be hard for other Länder to justify clinging to Microsoft just out of habit.

Some cities and institutions, like the French national police or parts of the Italian education system, have already made partial moves to open-source. But Schleswig-Holstein’s comprehensive approach is rare. It’s not just swapping out one software package—it’s building an entirely new IT foundation.

At the European level, this aligns with broader ambitions to reduce dependence on foreign tech giants. The Digital Markets Act and the Digital Services Act are aimed at curbing Big Tech’s dominance. Moves like Schleswig-Holstein’s show that governments aren’t just regulating—they’re actively choosing alternatives.

This could also have economic implications. By investing in local open-source solutions, governments can help build a European tech ecosystem that isn’t just reactive but innovative. Local IT firms benefit from contracts, expertise stays in the region, and the public sector becomes a force for digital innovation—not just a passive consumer.

The EU Angle: One Step Closer to Tech Sovereignty

Schleswig-Holstein’s shift is part of a bigger European trend. Across the continent, governments are waking up to the risks of digital dependence. The European Commission is investigating Microsoft over antitrust concerns (hello, bundling Teams with Office 365).

The EU’s digital strategy now explicitly encourages the use of open-source in public institutions. And with laws like the Digital Markets Act and the Interoperable Europe Act, the legal ground is shifting toward tech neutrality—and away from monopolistic lock-in.

This trend isn’t just political; it’s strategic. Europe wants to build its own digital backbone, powered by European software, stored on European servers, and governed by European laws. Schleswig-Holstein is showing one way to get there.

Risks and Roadblocks

Of course, not everyone is cheering. Critics warn of compatibility issues, learning curves for staff, and the risk of fragmentation. There’s also the ever-present danger of a Munich 2.0—a high-profile failure that ends in retreat.

Schleswig-Holstein’s government is well aware of these concerns. That’s why the migration is being carefully phased in, with pilot programs, training sessions, and ongoing feedback loops. There’s a clear commitment to make it work, not just make it happen.

Still, the transition must be managed carefully. Collaboration with federal ministries, courts, and municipalities—many of which still rely on Microsoft—could be clunky. Shared documents and legacy systems may require translation layers. And public opinion could sour quickly if productivity stalls or glitches pile up.

But if these challenges are handled with transparency and patience, the long-term payoff could be transformative.

Final Thoughts

So, is Schleswig-Holstein being bold, reckless, or visionary?

Perhaps a little of each. But one thing is certain: this isn’t just about software. It’s about who owns public infrastructure in the digital age. It’s about laws, sovereignty, budgets, and values. And it’s about Europe finally walking the talk when it comes to independence from Big Tech.

If Schleswig-Holstein pulls this off, it will be a milestone in the movement toward public-sector open-source adoption. If it stumbles, it will be a case study in how not to do it.

Either way, the state has already sparked a conversation that goes far beyond northern Germany. It’s no longer a question of whether governments can leave Microsoft—but whether they should. And that’s a conversation well worth having.

Stay curious, stay informed, and let´s keep exploring the fascinating world of AI together.

This post was written with the help of different AI tools.

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