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  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Mexit, not Brexit, is the new priority for the UK

(2025/08/08)


Opinion One of the dangers of stories based on big cash numbers is distraction. The numbers get all the attention, the bigger story behind them gets missed.

The fact that at the current rate the UK state is likely on the hook for nigh on £9 billion over five years in Microsoft licenses is a sterling example. How we got here, and where we're going if we don't start planning a Microsoft Exit, is much more than a $12 billion question.

Faced with £40B budget hole, UK public sector commits £9B to Microsoft [1]READ MORE

The numbers look horrendous, and they are. This year's UK [2]State Of Digital Government Review (SODGR) says that the country spends £26 billion ($35 billion) year on digital technology, so Microsoft gets one pound of every 13 spent. It's a truism that moving to open source doesn't save much money, as proprietary licensing spend is replaced by training, support, and local development costs, but reliable data is hard to come by in a field dominated by financial and political interests.

In any case, Microsoft is so deeply entrenched in state digital infrastructure that it seems a practical impossibility to do anything about it. The company has a good 20 years' lead on its competition in bending the ears and getting its feet under the desktops of enterprise and state decision makers. While the UK government has had spasms of promoting open source — most recently in [3]2017 — these have seen little enthusiasm and less adoption. As SODGR notes, UK state IT lacks co-ordination, leadership, funding, talent and executive influence. 55 percent of personnel budget goes on outside contractors, analysts and consultants rather than full-time staff.

This state of play explains much. Lacking these things, individual departments are big game for the professional hunters of corporate IT suppliers. It's not so much a matter of signing contracts as dividing the carcass' meat after the kill. [4]Why do so many big state IT projects fail ? Much better to ask why some [5]slip through the net and succeed .

[6]

SODGR has to be positive, and it duly notes the move to off-prem and AI as positive. It's not strong on how these counteract the structural flaws, but it seems the way is clear for Microsoft and the [7]hyperscaler-led private sector to continue to up its fees even as its previous promises have led to public sector productivity decreases. Ladies and gentlemen, it's all in SODGR.

[8]

[9]

Perhaps we could all live with that, as we have done forever, were it not for two facts and one inescapable conclusion. The cloud and AI, as currently configured, imply and require huge data flows into American owned datacenters. Those datacenters, even those within UK jurisdiction, [10]cannot prevent US government access . Therefore, the UK cannot consider them suitable for state data.

Why does the UK keep getting beaten up by IT suppliers? [11]READ MORE

This might seem hyperbole, but the facts are indisputable. The [12]US is not trustworthy - Trump's tariffs break existing World Trade Organization-governed treaties, a cornerstone of international regulation. Likewise, [13]Trump supports the removal of regulatory or legal barriers to AI development , so what would happen if the AI lobby asked for access to national data from outside the US? SODGR is silent on this, because it seemed fantastical even six months ago. It doesn't seem fantastical now.

You don't have to look too far to find how deep that blind spot goes. Ex-Prime Minister Tony Blair's think tank has just opined that the UK should [14]leave AI model development to China, the Gulf States and the US , because they’ve got all of the money. That none of them has a rule of law which respects the data we'd have to send to them for training doesn't factor in Blair's thinking, let alone the strategic competences the UK would cede. Plus, we have common interests with the well-regulated EU, even if Brexit makes that hard for politicians to admit. This is breathtakingly dangerous thinking.

The current UK government isn't much better, mistaking a fondness for [15]magical AI and [16]datacenters for a digital strategy. A proper one would be built around three parallel and interdependent goals.

[17]

The first is to identify where critical data is flowing to untrustworthy entities, and set a deadline for all such data to be held and processed in legally secure locations. As a necessary part of this, a unit with sufficient expertise to get full visibility of all such systems and provide guidance for implementation, both inside the government and with suppliers. This implies a third goal, being the creation of a national digital infrastructure that is structured to be resilient to any supplier owning the full stack.

[18]When hyperscalers can't safeguard one nation's data from another, dark clouds are ahead

[19]Windows 11 is a minefield of micro-aggressions in the shipping lane of progress

[20]The tiny tech tribe who could change the world tomorrow but won't

[21]Torvalds' typing taste test touches tactile tragedy

None of this can happen without involving all IT professionals that SODGR says work in the state sector. Their knowledge and experience is the ground truth without which nothing can happen. An expensive start to a very expensive process, one with a hugely valuable result.

The talent, leadership, influence and unified vision this would provide will be ideally placed to manage the next stage. The evolution of a 21st century digital infrastructure answerable to the people of the UK and nobody else. If that true vendor independence means an internal market and mindset where open source can be deployed freely and a final goodbye to gargantuan bills, that’d be a good side effect.

Mexit means Mexit, and that means more than money. ®

Get our [22]Tech Resources



[1] https://www.theregister.com/2025/08/07/uk_microsoft_spending/

[2] https://www.gov.uk/government/publications/state-of-digital-government-review/state-of-digital-government-review

[3] https://www.gov.uk/guidance/be-open-and-use-open-source#full-publication-update-history

[4] https://www.theregister.com/2025/02/04/ukgov_must_embrace_a_fastlearning/

[5] https://www.gov.uk/government/publications/home-office-major-programmes-accounting-officer-assessments/25-october-2024-passport-transformation-programme-accounting-officer-assessment

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aJXKtdJAbqbT_UXxyh46kwAAAJM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[7] https://www.theregister.com/2024/04/04/uk_cddo_admits_cloud_spending_lock_issues_exclusive/

[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aJXKtdJAbqbT_UXxyh46kwAAAJM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aJXKtdJAbqbT_UXxyh46kwAAAJM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[10] https://www.theregister.com/2025/07/25/microsoft_admits_it_cannot_guarantee/

[11] https://www.theregister.com/2025/01/28/uk_govt_it_suppliers/

[12] https://www.theregister.com/2025/02/26/europe_has_second_thoughts_about/

[13] https://www.theregister.com/2025/07/24/ai_trump_plan_/

[14] https://www.theregister.com/2025/08/04/tony_blair_institute_says_uk/

[15] https://www.theregister.com/2025/01/13/uk_government_ai_plans/

[16] https://www.theregister.com/2025/05/16/uk_overrules_local_council_approve_datacenter/

[17] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aJXKtdJAbqbT_UXxyh46kwAAAJM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[18] https://www.theregister.com/2025/08/04/when_hyperscalers_cant_safeguard_one/

[19] https://www.theregister.com/2025/07/28/windows_11_is_a_minefield/

[20] https://www.theregister.com/2025/07/24/column_settings_standards/

[21] https://www.theregister.com/2025/05/20/torvalds_typing_taste_test_touches/

[22] https://whitepapers.theregister.com/



Simple options

Kevin Johnston

As someone who worked in email administration, the problem is always how convincing the MS Salesteam are when talking to the C-Suite (I always thought that meant the Crayola people).

Exchange is an OK product but has a number of features which provide increasing lockins to the MS world. It does not quite run to International standards so sometimes mail from platforms that do are not displayed as intended and some outbound mail misbehaves for non-MS recipients. In addition, it must be installed on Windows and uses a very very large number of servers for Enterprise level installations. Also, MS have still not worked out how to so in-place upgrades but since you are running on Windows that becomes expensively irrelevant as you need to replace the OS for the each new version of Exchange.

Re: Simple options

wolfetone

I work with a lad who had a God/Saviour complex. He's never wrong, he's always right, he knows best. Except he is hardly ever right, and his own prejudices stop him from looking at the problem correctly.

A month or two ago we get an email forwarded to us by our gaffer, and the email is from a Microsoft representative who is our "account manager". They wanted to set up a call to discuss our needs and wants and blah blah fucking blah. It's a sales call. It's a sales pitch. The fucker is just interested in sales, I'm already busy so I immediately say no to this meeting. Except I get pushed in to it by the gaffer along with my colleague because they feel it might be good. I know it won't be, but the lad I work with is eager to point out "This is our account manager at Microsoft so they will know whats best for us". I tell them both that the email reeks of a sales pitch and that is all it will be, because we've never had to deal direct with Microsoft so how could we really have an account manager with them?

I'm overruled.

I'm not 5 minutes in to this meeting and all of what I thought it would be was true. The representative had no real technical background other than what Microsoft has told her to sell. My colleague is going off on mad tangents asking her things she has no idea about because for every question he asks she says "I don't know personally but I will pass this on to the X expert/lead of that department and we can arrange another call to discuss that in detail".

The call, in essence, was trying to get us to shift our licenses to E5. Which is prohibitively expensive for what it provides. There was nothing of value to the call which didn't surprise me at all. When the call finished I went on a call with my colleague and he was so disappointed. He genuinely thought it would be useful and could now see - after the 45 minutes call - exactly what I told him it would be.

I can see though how bigger/larger corporations would fall in to this trap because the representative of the company either isn't cynical enough, knowledgeable enough, or has a true grasp of their own limitations to know they don't have the full picture, they aren't going to be in a position to question everything the seller is saying. They take them on face value, agree to everything, then cannot understand how the picture perfect postcard world Micro$oft offered hasn't materialised.

Re: Simple options

gryphon

For public sector there is no real choice except to use E5, or at least E3 + E5 security and compliance etc, which funnily enough costs more than E5.

What is surprising to me is that they don't do an E7 yet to include E5 + Copilot + x + y + z for a few $ a month less than the sum of the components. A lot of orgs would fall over themselves to sign up to that.

At least they are staying with a minimum 12 month contract period, for now.

Re: Simple options

gryphon

Not quite true for Exchange now upgrade wise.

You can do an in-place upgrade of Exchange 2019 to Exchange SE whether the OS is 2019, 2022 or 2025.

What you still can't do is an in-place upgrade of the OS underneath Exchange.

So when the OS goes out of support you are still going to have to provision new servers with a new DAG in same org, install Exchange and then move all the mailboxes to databases on the new DAG.

Not a massive issue if VM's, more of a problem if running on tin and org have insisted on using an older version of the OS.

There are undoubtable some brilliant IT people working in the Public Sector

Caver_Dave

But to get a sufficient number of the best minds, who can envisage and implement a wholesale review, and then actually implement the agreed actions, you need to pay a reasonable amount to attract them from the private sector.

Re: There are undoubtable some brilliant IT people working in the Public Sector

abend0c4

Unfortunately, you also need political leadership that lasts more than [1]eight months to continue to support the objectives and, more importantly, the budget throughout the lifetime of the project. And to have a project that conveniently fits within the remit of a single department.

The government machinery simply doesn't exist to deal with these long-term strategic issues that cross departmental boundaries. As departmental budgets become increasingly squeezed you might imagine it would be an increasing priority to control external expenditure, but much of it will be committed to long-term contracts so the cuts will be made where they can be made quickly.

[1] https://www.theguardian.com/politics/2024/mar/17/cabinet-ministers-last-average-of-eight-months

Re: There are undoubtably no brilliant IT people working in the Public Sector

AMBxx

As a freelancer, I work across Private and Public sector. There isn't enough money in the world to make me want to work in the Public sector.

Con

elsergiovolador

This isn’t just bad procurement, it is part of the wider rot where government policy is written to serve big multinationals at the expense of the country’s own capabilities. Successive governments have handed over control of critical infrastructure to a foreign, tax-dodging giant, while designing measures like IR35 to squeeze small British businesses out of the market and remove any real competition. They preach “support British business” while shovelling billions to corporations that pay little back and hold the UK in a chokehold. Calling it negligence is generous; if it isn’t deliberate, it might as well be.

On a related note

Flocke Kroes

When the government commissions custom software the first line of the contract should be "All source code written will copyright UK Government and supplied before payment." followed by something like "Only GPL compatible third party libraries may be included".

Re: On a related note

AMBxx

That means it will all have to be written from scratch with no code reused from previous work.

For my work, if asked, I put in something about reusing parts of the work.

Doctor Syntax

" It's a truism that moving to open source doesn't save much money, as proprietary licensing spend is replaced by training, support, and local development costs, but reliable data is hard to come by in a field dominated by financial and political interests."

Is it really a truism? What it most likely means is that staff are expected to know Windows and Office without having to be trained and the cost comes afterwards in things like confidential information being CCed, executable files with a .pdf suffix being clicked, Excel being mistaken for a database application and all the rest of it.

When the ensuing disasters are investigated doe "we don't see a need to train staff because we assumed experience of Microsoft products" ever get considered? Perhaps the greatest gain from Mexit wouldn't be the money saved on licences or even the digital sovereignty; it would be proper training.

Charlie Clark

This truism is brought to you buy the marketing department of the Sirius Cybernetics Corporation…

Open source or not is less relevant than compatibility and sovereignty. Sure, training needs to be considered, but I'd argue that Microsoft's portfolio places an increasing burden on the technical staff and the proposed migrations to Microsoft managed services poses an unacceptable risk to business sovereignty.

navarac

<< The cloud and AI, as currently configured, imply and require huge data flows into American owned data centres. Those data centres, even those within UK jurisdiction, cannot prevent US government access. Therefore, the UK cannot consider them suitable for state data.......The US is not trustworthy >>

T H I S says nearly all. And as for leaving AI to the Chinese etc; FFS.

Unfortunately, the history of achievements within UK Government Procurement services, preclude any success in anything at any time in the future, if ever.

Alternatives

hoola

I completely agree that globally the majority are stuck with Microsoft however one has to ask what the genuine viable alternatives are and would that be any better,

Just shouting "FOSS" does not solve many of the problems as what works for a small organisation with skilled developers and support does not work when scaled up.

As I see it the only commercial alternative to M365 currently is Google Workspace. I don't see that as any improvement at all and to be honest is a backwards step.

Taking a "Role your own approach":

What is required to setup an email and collaboration system that is used across the entire public sector?

How much would that cost?

Where do you run it - one assumes there is unlikely to be DC capacity now as so much has been shifted to the cloud?

If you do run it in a cloud what are your option?

Microsoft Azure

Amazon AWS

Google Cloud

Oracle

You could go to a smaller provider we are seeing casualties there now as they cannot compete with the convenience the bit boys.

Now we have the office suite, there are alternative and for 95% (maybe more) these will be fine but as soon as you start making exceptions the system breaks down. Moving onto the support. large organisations, public sector or private sector need something where there are contracts, SLAs, guaranteed updates and longevity. The fiasco with CentOS is a perfect example of why just saying "FOSS" or "use Linux" as the generic response raises so many red flags.

Simply saying "replace Windows with Linux & Office with Libre Office" is the easy bit. The reality is very different.

What is unclear in the £9Bn deal is how many users that covers. Education is mentioned and this is absolutely huge as high school upwards all have email. The local school my kids went to switched to Google, ChromeBooks and Google Workspace. That is not a solution, you are just replacing one monstrosity with another.

Fine day for friends.
So-so day for you.