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Government IT contracts with Microsoft, Cisco, IBM, HP etc. etc.

replace it all with free software running in-house developed and maintained programs for vastly less, and run it on hardware that would have to be scrapped if forced to upgrade from XP to Win7/8.

When you give IBM a maintenence contract the first thing they do is hire 30 people to do it. Why not hire those people yourself, cut out the overhead, and get loyalty?