Israel will end software licensing deal with Microsoft due to cost

Israel will not renew its contract with Microsoft to provide software for government ministries due to a new licensing framework pushed by the US-based tech giant that would significantly raise costs.

Under the existing agreement, Israel pays NIS 100 million per year for Microsoft software, which it then has ownership of. However, Microsoft is seeking to have Israel instead rent the software, a move the Finance Ministry says would double the cost, according to Reuters.

The announcement comes after a year of negotiations between Israel and Microsoft on a new licensing deal.

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