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Israel renews licensing agreement with Microsoft

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JERUSALEM (Reuters) – Israel’s government signed a new software supply deal with Microsoft on Tuesday, three months after saying it would not renew its contract with the firm due to a change in license terms that would have doubled its price.

In a statement, the Finance Ministry did not disclose financial details.

In August, it had said that under its current framework agreement with Microsoft, Israel pays more than 100 million shekels ($27 million) for the procurement of Office desktop software, Windows and server software for ministries and government offices.

The ministry said its new deal meets the government’s needs and maintains government spending.

Microsoft had tried to shift Israel from a licensing system where it owns the software and can use the software as it wishes, to a subscription system that is similar to renting. It also sought to move data to the cloud.

A government source said much of the current contract was left in tact.