SCHWÄBISCH HALL, A community of 36,000 in southern Germany, plans to build its entire IT infrastructure on the open source Linux operating system, replacing Windows from Microsoft Corp.

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The local government has decided to deploy Linux software supplied by SuSE Linux on servers from IBM and up to 400 PCs, SuSE Linux said Tuesday in a statement. The government is targeting an initial cost savings of more than $102,300, according to the statement.

In addition to cost savings, the city government expects Linux-based IT infrastructure to provide greater security and interoperability with other systems, the city's mayor, Hermann-Josef Pelgrim, said in the statement.

Initially, the project will include the migration from Windows and Microsoft Office to the SuSE Linux Enterprise Client and OpenOffice.org for 120 client PCs, a number that is expected to rise to 400 client PCs in the final stage, said SuSE Linux in Nuremberg, Germany.

On the server side, SuSE Linux Enterprise Server software will be deployed on IBM's eServer xSeries servers, the company said.

Microsoft could not be immediately reached for comment.