Author: Ralf Hersel | Source: Original Article
Publication Date: October 31, 2025 | Summary Reading Time: 4 minutes

Executive Summary

The Bavarian state government plans the complete transition to Microsoft 365 for all state employees with costs of nearly 1 billion euros over 5 years - without public tender and ignoring data protection concerns. The Heinlein Group and OSBA sharply criticize this decision as a violation of digital sovereignty and instead demand investments in European open-source alternatives. While other EU countries and German federal states are already successfully relying on sovereign IT solutions, Bavaria threatens to fall into dangerous dependence on US technology.

Critical Key Questions

How can Bavaria build digital sovereignty while simultaneously subjecting sensitive administrative data to access by US authorities through US laws (CLOUD Act, Patriot Act)?
What long-term strategic risks arise from total dependence on a US technology corporation in critical administrative infrastructure?
Why does Bavaria ignore successful open-source models from other federal states and forgo strengthening the domestic IT economy with public funds?

Core Issue & Context

Bavaria's planned billion-euro investment in Microsoft 365 directly contradicts European efforts toward digital sovereignty. The decision is made without tender and alternative assessment, while other regions are successfully relying on open-source solutions.

Most Important Facts & Figures

• Planned costs: Nearly 1 billion euros over 5 years (200 million EUR annually) • Affected persons: 270,000+ state employees, additionally 350,000 municipal employees • Monthly costs per user: Approx. 55 EUR (MS 365 E5 with Teams and Co-Pilot) • Planning status: Since August 2024, contracts not yet concluded • Legal status: No public tender planned • Alternative solutions: Already successfully implemented in Thuringia, Schleswig-Holstein

Stakeholders & Affected Parties

Directly affected:

Bavarian state government and 270,000+ state employees
Municipal administrations (350,000 employees)
Bavarian IT companies (excluded from contract)

Indirectly affected:

Citizens (data protection, tax money usage)
German/European software industry
Data protection authorities

Opportunities & Risks

Risks:

Data protection: US laws enable authority access to all data
Strategic dependence: Total binding to US technology
Economic: 1 billion EUR flows abroad instead of to domestic economy
Security: No control over infrastructure and updates

Opportunities:

Digital sovereignty: Through open-source alternatives
Economic development: Strengthening Bavarian IT companies
Role model function: Bavaria as pioneer of European IT solutions

Scenario Analysis: Future Perspectives

Short-term (1 year)

Likely: Continuation of Microsoft planning without course correction, increasing criticism from data protection advocates and domestic IT economy. Possible legal objections to missing tender process.

Medium-term (5 years)

With Microsoft decision: Complete dependence established, price increases through monopoly position, migration of Bavarian IT talent. With course change: Bavaria as pioneer of digital sovereignty, flourishing open-source ecosystem.

Long-term (10-20 years)

Microsoft scenario: Total technological dependence on the USA, loss of critical IT competencies. Sovereignty scenario: Bavaria as European center for sovereign digital technologies, technology export instead of import.

Action Relevance

Immediate measures required:

Stop Microsoft planning until proper tender process
Review of available open-source alternatives (OpenTalk, openDesk)
Inclusion of Bavarian IT economy in planning process
Time-critical: Contracts not yet signed - window for action still open

Bibliography

Primary source:

A Dog Named Söder - Tuxedo Blog

Supplementary sources:

Verification status: ✅ Facts checked on November 1, 2025