Netherlands tax agency abandons US workplace suite cloud plan, eyes open-source alternatives

The Netherlands' Tax and Customs Administration has scrapped a planned move to Microsoft 365 in the public cloud. The decision reflects a broader European push for digital sovereignty and open-source software, according to discussions at Open Source Summit Europe. The Dutch government is also examining wider adoption of Linux and open-source tools, following similar moves by other European agencies.
Dutch tax officials had already moved about 5,000 employees before an advisory review recommended reversing the cloud migration in June. The rollout was paused in July; current Microsoft tools will remain while replacements are prepared.
Under the government’s schedule, mail and calendar will be hosted locally in 2027, followed later that year and in 2028 by European open-source storage and collaboration options. The review cited security, processing, long-term viability, and control over confidential data. At Open Source Summit Europe, the Linux Foundation said 94% of EU organizations consider digital sovereignty important.
The shift may affect Dutch tax employees and citizens interacting with tax services, as migration timelines and tool changes could alter workflows or service continuity. It could also encourage other public bodies weighing reliance on US cloud providers to examine open-source and locally hosted alternatives. For vendors, the decision may signal demand for European or open-source workplace tools, though practical costs, interoperability