Denmark Steers Away from Microsoft: A New Frontier in Public Sector Software

Denmark’s Road Traffic Authority (Færdselsstyrelsen) is pioneering a shift towards open-source software, moving away from Microsoft office products such as Word, Excel, Teams, and Outlook. According to Director Stefan Søsted, this move will enable the agency to have full control over its data while reducing reliance on major suppliers. Søsted emphasized that relying too heavily on companies like Microsoft could lead to inflated prices. He believes open-source solutions offer comparable quality while ensuring cost savings and independence regarding suppliers and data storage.

The transition is part of the SIA Open pilot project, implemented by the state IT service Statens IT. SIA Open provides an open-source operating system that is publicly available and requires no direct payment. The Road Traffic Authority will be the first client of this pilot project, with plans for up to 15,000 users transitioning to the new system.

Statens IT Director Michael Jørnø highlighted the importance of data control. Data processed in the new system will be stored in Statens IT’s own data centers, ensuring full control over them. Responding to the Danish Road Traffic Authority’s move, Microsoft stated their solutions are “competitive and offered at a fair price, combining high security with innovation and effective collaboration” within the public sector. They also welcomed competition and noted “no contradiction between Open Source and what Microsoft offers.” The company further indicated that Microsoft’s European data centers comply with EU legislation and that beginning in 2026, they will offer data storage in Denmark within three new proprietary Danish data centers.

Global Shift Towards Open Source in Government Sectors

Globally, more governments are considering open-source software in their digital strategies to improve cost efficiency and data security. This shift is gaining momentum as more public sector entities seek independence from single suppliers and look for more flexible, customizable solutions.

Security and Cost Benefits

Adopting open-source software provides significant potential cost reductions and enhanced cybersecurity measures. Public sectors prioritizing data sovereignty and transparency often turn to open-source solutions to improve oversight and minimize risks associated with proprietary software dependencies.

Microsoft’s Expanding Data Presence in Scandinavia

Microsoft’s announcement of new data centers in Denmark reflects an increased focus on localized data services. As part of an ongoing effort to cater to regional compliance and data handling practices, Microsoft aims to provide more secure and localized options for public sector data storage across Scandinavia.