The article is a bit understated considering the magnitude of this decision...and many others like it that took place despite significant Microsoft pressure during their just-completed fiscal Q4:

CENTRELINK has rejected a move from its entrenched IBM Lotus Notes platform after spending the past couple of months evaluating the offerings of Microsoft and other competitors.

Information technology deputy chief executive John Wadeson confirmed the department had begun discussions with Microsoft and several other vendors about switching to an alternative email system and office productivity suite.

However, after looking at the alternatives, he said the department would be sticking with IBM's product.
Not necessarily related to this specific story, but having just come out of the quarter, there are similar tales to be told.  In many of these "defend" situations, customers end up considering a broader scope of IBM Lotus software, and this has given us many opportunities to beat Microsoft both in the Notes/Domino space as well as with Quickr, Connections, and Sametime.  One thing I'm proud of as a sales manager is that our team is very, very good at turning defense into offense.

Link: AustralianIT: Centrelink stays with Notes email >

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