Newham sets a precedent

Microsoft could face pressure from local authorities to match software licensing discounts it has offered Newham Council,...

Microsoft could face pressure from local authorities to match software licensing discounts it has offered Newham Council, following its trial of Linux.

The Newham deal will help the council save £1m a year in IT costs and could offer a better discount than the 2002 agreement between Microsoft and the Office of Government Commerce.

Bob Griffith of Socitm, who helped negotiate the OGC deal, said, "The current memorandum of understanding says that if any public authority gets a better deal then it can be renegotiated."

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