Microsoft faces a serious threat to its UK public sector monopoly from plans by local authorities to increase their use of open source software, a survey commissioned by the FT has found.
More than 60 per cent said they intended to increase their use of open source software, which is free or much cheaper than Microsoft's products. More than three-quarters using it plan to expand their use over the next three years, while two out of five who do not yet use it plan to do so.
The survey of nearly 100 local authorities and public bodies comes as the new government prepares to announce plans to encourage more take-up of open source in the public sector, which spent £12.4bn on information technology in 2003-04.
The cost reductions identified as the main benefit of open source products by the vast majority of respondents in the survey will help public bodies achieve savings targets laid down following the Gershon review of public spending.
Microsoft faces pressure across Europe over its software pricing structure which leaves public bodies facing huge bills for upgrading the company's Windows programmes. Steve Ballmer, the company's chief executive officer, has acknowledged that the threat from open source software now poses Microsoft's most important long-term competitive challenge.
Ministers are due to announce funding for an Open Source Academy aimed at encouraging wider open source use in the public sector by making it a viable business option.
The UK will also promote Europe-wide initiatives on open source in its six-month EU presidency beginning in July.
Other countries could use open source to bargain with Microsoft.
Minutes from a meeting between Microsoft representatives and local authority representative bodies from the UK, Belgium and the Netherlands this year said the pricing structure had damaged trust. Local authorities told the meeting they "felt they were being forced down a route dictated by Microsoft and as a result they are now looking for a far more open approach where users have choice".
Angela Waite, president of the Society of IT Managers, which represents 95 per cent of local authorities and which carried out the survey for the FT, said the survey showed concerns about open source were easing.
"The open source market is beginning to come to some maturity which gives confidence to IT managers that they can start to rely on this technology."
A separate study being published this week by government advisers on the use of IT in schools will say primaries can save nearly half of their IT budgets using open source and secondaries nearly a quarter.
Bristol city council is in the process of training 5,500 of its staff to use open source software, sometimes known as OSS.
Additional reporting by Richard Waters in San Francisco {i)All about the bottom line, Page 4
