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Microsoft sucks 8,136,000 EUR each year out of the European Commission. Commission pays Microsoft each each 226EUR for its office infrastructure. Commission has approx 36,000 users. Make the math.

E-1533/08EN
Answer given by Mr Kallas
on behalf of the Commission
(14.5.2008)

1. On 22 May 2007, the Commission concluded - on its own behalf as well as on behalf of another 37 EU Institutions (including the Parliament) and Agencies - the so-called “Interinstitutional Licensing Agreement” (ILA) with Microsoft Ireland Operations Ltd, which governs the non-perpetual right to use a number of Microsoft software products, both on part of the central server infrastructure and for the final users (desktops and laptops). This subscription-based contract entered into force on 1 June 2007 for an initial duration of three years and may be renewed for one additional year. Concerning its financial value, the Commission refers the Honourable Member to its reply to written question E-2735/031 by Mr Ford; as stated therein, the ILA does not involve any direct revenue to Microsoft because the products are acquired through a Large Account Reseller (LAR) selected through an open call for tenders. See point 2 for further information on the LAR expenditure.

In addition, on 31 May 2007, the Commission concluded - on its own behalf as well as on behalf of another 21 EU Institutions (including the Parliament) and Agencies - a framework contract with Microsoft SA/NV (Belgium) covering the provision of high-level services related to the use of products acquired under the ILA. This framework contract, which replaces a previous one, entered into force on the date of signature for an initial duration of three years and may be renewed for one additional year.

During 2007, the Commission signed specific contracts for an amount of €32,000 under the previous framework contract for services and €1,336,800 under the new framework contract (i.e. since 31 May 2007).

Again during 2007, the totals - including the Commission and the other concerned EU Institutions and Agencies which, by 31 March 2008, had notified the relevant figures for the purposes of Article 118(4) of the Implementing Rules2 - are €1,081,610 under the previous framework contract for services and €2,241,565 under the new framework contract (i.e. since 31 May 2007). These totals have been published pursuant to the above-mentioned provision3.

2. During 2007, the Commission paid a total amount of €4,484,023 under its framework contract with the LAR chosen following an open call for tenders, in consideration for the software products covered by the ILA; another 12 EU Institutions and Agencies were parties to this framework contract, which had entered into force on 23 February 2004 and expired on 22 February 2008.

Again during 2007, the total - including the Commission and the other EU Institutions and Agencies participating in the Commission’s contract with the LAR which, by 31 March 2008, had notified the relevant figures for the purposes of Article 118(4) of the Implementing Rules - is €7,242,525.72. This total has been published pursuant to the above-mentioned provision 4.

A new LAR contract has been awarded following a recent call for tenders5, but it was not used during 2007.

It should be stressed that the Commission does not acquire any peripherals (such as keyboards and mice) from Microsoft, as this type of equipment is included in the calls for tender aimed at acquiring the hardware to which the peripherals are connected (e.g. personal computers (PCs) or laptops). The Commission is not aware of any such acquisitions by the other EU Institutions and Agencies either.

3. The Commission does not pay to Microsoft any fees in relation to intellectual property rights, other than those already included as part of the right to use the software products covered by the ILA, and paid through the LAR.

The Commission is not aware of any such separate payments by the other EU Institutions and Agencies either.

4. According to the metrics defined in the ILA, the total number of end users at the Commission in 2008 can be estimated at 35,960 worldwide. This figure corresponds roughly to the number of PCs on which the reference configuration for client desktops (including software products from Microsoft and several other editors) is installed. It includes the 25,537 permanent posts (officials) and 483 temporary posts (temporary agents) laid down for the Commission in the Authorised Establishment Plan (Staff) of the General Budget 2008, as well as other categories of users (contract staff, local staff, special advisers, seconded national experts, trainees, external service providers, etc.).

The Commission cannot provide the precise number of end users for the other EU Institutions and Agencies included in the ILA, as this exercise involves the computation of parameters which are defined in their individual specific contracts with the LARs.

The Commission would point out that, by comparing its LAR expenditure in 2007 with the current total number of end users, one reaches a figure of around €125 (per year and end user). It should be noted that this figure represents only a marginal part of the cost of operating and maintaining the Commission’s office automation environment. It does not correspond to any particular unit price laid down in the ILA, but to the right to use a combination of products acquired through the LAR. In any case, one can note a significant decrease in comparison with previous years. For example, in the Commission’s reply to written question E-2735/03 mentioned above, the total annual cost of Microsoft products for its central office automation infrastructure was estimated to be around €226 per user.