Canada could save millions by developing its own operating system instead of relying on Microsoft Windows

Canada has made digital sovereignty a priority in areas such as cloud computing, artificial intelligence and telecommunications. But one important part of its digital infrastructure has received far less attention: the operating systems running government computers.

Why does the federal government depend so heavily on software from a foreign company? And could Canada reduce that dependence by developing its own alternative?

My new study argues that Canada could save millions over the next decade by adopting a national, free and open-source operating system.

Such a move could also give Canada greater control over its digital infrastructure and reduce its reliance on technology providers from the United States amid growing trade tensions.

Why operating systems matter

Governments around the world are increasingly concerned about who controls their data, infrastructure and software. This is known as “digital sovereignty” and it has become a central focus of global policy.

Edward Snowden’s 2013 disclosures helped bring these concerns to public attention. Snowden, a former U.S. intelligence contractor, revealed extensive U.S. government surveillance, including the collection of communications data.

The U.S. later passed the Clarifying Lawful Overseas Use of Data Act, which permits American authorities to compel U.S.-based providers like Microsoft, Google, AWS, Amazon and Meta to disclose data within their control, even when it’s stored abroad. This means that even storing data with American companies in Canada does not place it beyond the reach of the U.S. government.

Yet Canada’s sovereignty debate has focused disproportionately on cloud computing, AI and 5G infrastructure. It has paid much less attention to operating systems, despite their role as the foundation on which computers and other applications run.

Microsoft Windows accounts for 63.75 per cent of the Canadian desktop market, and the Canadian government spends more than $250 million annually on Microsoft to run its operating systems every year. This is not only a recurring fiscal dependency on a single foreign vendor, but it’s also a potential security risk.

Loss of trust in the U.S.

These concerns have taken on greater urgency as relations between Canada and the U.S. have deteriorated.

Polling reported by Politico found that 60 per cent of Canadians say they can “never trust Americans the same way again” while 63 per cent believe the U.S. creates more problems than it solves.

A separate poll found that 60 per cent view the U.S. as an unreliable and unsupportive ally and as of 2026, 78 per cent no longer consider the U.S. an ally following the U.S. President Donald Trump’s 2025 tariff regime, annexation rhetoric and controversial claims about how trade works.

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More recently, proposals in Florida to tax Canadian snowbirds without representation have added to concerns about how Canadians are treated in the U.S.

Research suggests that declines in political trust can be durable and difficult to reverse. This damage to the Canada-U.S. relationship is likely to outlast the politicians responsible for it. Against this rupture, Canada’s reliance on U.S. technology providers deserves closer scrutiny.

The open-source alternative

Canadians already have alternatives to Windows available. One of the best-established is Linux, a free and open-source operating system used across personal computers, servers and other devices.

Linux powers the world’s fastest supercomputers and is widely used by most Fortune 500 companies and internet service providers.

Free and open-source software (FOSS) allows people and organizations to inspect, use, modify and redistribute source code under licences that permit those activities.

FOSS dominates software development, with one estimate suggesting 70 to 90 per cent of modern software solutions include open-source components.

Canada could develop its own national Linux-based operating system by building on Debian, an existing open-source operating system, instead of starting from scratch. This would allow the government to inspect and modify code, manage its own updates and maintain the system over time.

Lessons from other countries

Canada wouldn’t be the first country to pursue greater control over its operating systems and software.

China has developed operating systems including Kylin and openKylin, while Russia has developed Astra Linux. India has developed BOSS Linux, while France’s Gendarmerie nationale has deployed GendBuntu. South Korea has developed alternatives including Gooroom, HamoniKR and TmaxOS. These countries have all saved themselves millions of dollars by switching to their own operating systems.

Germany offers another model, which is particularly well-suited for Canada. Its Centre for Digital Sovereignty, known as ZenDiS, was established in 2022 to help public administrations reduce their dependence on individual technology providers.

Germany has also pursued initiatives such as LiMux, a municipal Linux migration, and the use of LibreOffice, a free and private office suite with no forced AI use.

What would a Canadian operating system cost?

Switching an entire government to an open-source operating system is not cost-free. My proposal is to establish a Canadian Free and Open Systems Foundation — a Crown not-for-profit modelled on Germany’s ZenDiS, alongside a three-phase implementation roadmap and five policy recommendations targeted at relevant institutions.

My study estimates this could cost $23 million to $43 million over two years (compared with an estimated $49 million to $62 million for ZenDiS).

Canada could also reduce costs by seconding staff from the Canadian Digital Service, Shared Services Canada and the Communications Security Establishment. It could also leverage existing NSERC Alliance and Mitacs programs.

My study estimates that the gross 10-year savings of switching operating systems would be between $700 million and $1.13 billion.

Canada could easily recoup its investment costs through government savings alone and earn a large return on investment. Schools, universities and Canadian businesses would receive additional benefits by switching away from the licensing costs associated with U.S. operating system providers. Such a shift could deliver better performance, cost savings and stronger national security.