I believe the government should use whatever best serves the public welfare. Given that the bulk of the IT expense for a government is going to be support not initial purchase.
Open software requires support approximately as much as proprietary systems do. The unfortunate fact is that although one can call Microsoft technical support, one cannot "get Linux on the phone."
The open software ecosystem is changing for the worse - e.g. Oracle's IP strategy with regard to software developed by Sun, particularly the mission critical (for a government) Open Office suite.
Do not misunderstand me, I have political concerns about governments partnering with business as the gateway to a slippery slope.
Were this story about IBM rather than Microsoft, it would largely pass unnoticed on HN (and were it a story about government using iPads which depend on Apple's cloud the praise would be laid on so thick one would need hip waders).