Microsoft’s chief executive signed an agreement with Federal Interior Minister Otto Schily to protect critical German infrastructure IT operations.

The company said the agreement’s goal is to increase IT security in critical infrastructures through an intensive exchange, regarding security options and mechanisms between the Federal Office and Microsoft.

Germany is a market where Microsoft has been losing ground in recent years, especially in the public sector, to Linux. In 2002, it was Schily’s department that signed a memorandum of understanding with IBM, approving government bodies’ purchase of Linux hardware and software at competitive prices from IBM.

By the middle of 2003 more than 500 government departments and agencies had signed-up, with Schily calling the agreement a milestone.

Meanwhile, Microsoft’s on-going battle against Linux became a personal matter for Ballmer in January last year, when he personally lobbied Munich City officials against their wholesale replacement of Windows desktops and servers for Linux. Ballmer’s mission ultimately failed.

The timing of this week’s agreement, though, is unfortunate, given Windows systems in Europe, the US and Asia are being seriously disrupted by the latest worm written to attack Windows, called Sasser. Systems in transport, government and banking have been effected.

As the worm spread, Ballmer called Microsoft’s deal with Germany a milestone as to providing trusted co-operation with the governments in Europe and worldwide.

Under the deal, Microsoft said it would participate with the German government on expanded interoperability between Microsoft products and other open standards.

This article is based on material originally published by ComputerWire