Tech giant Microsoft (MSFT) has been actively trying to convince the business world that living without its products is a tall order. And indeed, from Windows to Office and beyond, Microsoft is a very big part of most business days. But some turn to open source alternatives instead, whether using OpenOffice or Nextcloud or something similar. The government of Germany’s Schleswig-Holstein is discovering this for itself, and saving big money in the process. Investors were unfazed, though, as shares rose over 1.5% in Monday afternoon’s trading.
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The state administration division of Schleswig-Holstein decided that it would no longer turn to Microsoft for services, and instead, went with several open source alternatives to close the gap. The move was not exactly smooth, as “problems and criticism” followed. But word from digitalization minister Dirk Schrodter says that the move delivered, in a big way. The state would save “…over 15 million euros…” in license costs alone next year. Subsequent years are expected to deliver similar savings.
The savings did not come free, however. At least, not at first; 2026 will see one-time investments of nine million euros go into effect in order to convert workplaces over fully to the open source tools, reports note. But the annual savings suggest that the initial outlay will be recouped in less than a year, and the savings that follow will likely do so permanently.
Black Friday Numbers a Disaster for Microsoft
Meanwhile, Black Friday was just over a week and a half ago, but some of the numbers recently emerged and proved unpleasant for Microsoft. As it turns out, Microsoft’s Xbox system represented 15% of console sales on Black Friday. Sony’s (SONY) PlayStation, meanwhile, represented nearly half of all console sales at 47%.
This actually put Microsoft just ahead of something called the Nex Playground Interactive Gaming System, which landed 14% of console sales for the Black Friday week. The sales comparisons are a little tougher to make this far into the season, though; after all, most customers who want any console already have them, and are buying supplements or replacing damaged items. But with the next-generation consoles expected out in the next two years, this is not a great way for Microsoft to go out, regardless.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 8.33% rally in its share price over the past year, the average MSFT price target of $630.64 per share implies 28.46% upside potential.
