Copenhagen and Aarhus are reevaluating their relationship with Microsoft as an IT provider, citing economic concerns and potential risks associated with relying on a U.S.-based company. Both municipalities have historically utilized Microsoft Office programs and cloud services.

In Copenhagen, the decision is motivated by cost considerations and a perceived “monopoly-like” situation. Henrik Appel Espersen, chairman of the audit committee in the municipality, also noted that the current foreign policy climate with Donald Trump as president of the United States is a factor. The municipality fears potential disruptions to essential services if relations with the U.S. deteriorate and Microsoft is compelled to cease operations.

A similar line of reasoning has led to a recent decision in Aarhus to transition away from Microsoft. Bo Fristed, Head of Digitalization in Culture and Citizen Service in Aarhus, indicated that switching to a German provider has resulted in significant cost savings. His department’s annual expenses have decreased from 800,000 kroner to 225,000 kroner.

The move comes after reports highlighting a surge in municipal spending on Microsoft products in recent years. Municipalities’ annual bill increased from 313 million kroner in 2018 to 538 million kroner five years later, creating a situation where there are no viable alternatives.