Israel pays more than $27 million a year for the procurement of Office desktop software, Windows and server software for ministries and government offices.

According to the Finance Ministry, Microsoft is trying to shift Israel from a licensing system where it owns the software and can use the software as it wishes, to a subscription system.

The ministry noted that the change, which includes moving data to the cloud, does not meet the government’s needs. It said the state had been negotiating with Microsoft officials in Israel for a year to no avail.

Israel plans to freeze the existing licence structure owned by government ministries, which may be used without further payment.

“This will also encourage government ministries to re-examine their needs of using Microsoft technology or switch to other technology alternatives”, the ministry said.