Last Updated on 10. August 2026
The Federal Ministry for Digital Affairs and State Modernization (BMDS) and DATABUND — the association of mid-sized IT service providers and software manufacturers for the public sector — officially signed a cooperation agreement on July 30, 2026. The goal is clearly stated: to accelerate the digitalization and modernization of government and public administration by systematically leveraging the expertise of mid-sized IT companies. As a DATABUND member, mgm is part of this initiative.
For years, the digitalization of public administration in Germany has been driven primarily by large corporations and international platform providers. In doing so, an enormous potential has often been overlooked: the specialized, experienced mid-sized IT sector. Companies like mgm possess deep industry knowledge, decades of project experience, and the ability to develop tailored solutions for the complex requirements of government agencies — without dependency on foreign hyperscalers.
This is precisely where the cooperation agreement comes in. Mid-sized IT companies are to be structurally and proactively involved in the development of digital government services going forward. At the same time, their expertise will be leveraged to build a sovereign digital infrastructure — a topic that has become a top political priority given geopolitical developments and growing dependencies on non-European providers.
Why Does This Matter for mgm?
As a DATABUND member, mgm is part of this partnership and stands to benefit directly from the new structures created through the cooperation:
- Direct access to political decision-makers: The structured dialogue with the BMDS makes it possible to bring real-world experience and requirements from actual government projects directly into the political process.
- Early involvement in initiatives: Mid-sized IT companies will no longer be relegated to the role of subcontractors at the end of a long procurement chain, but will instead be involved as equal partners from the very beginning.
- Strengthening digital sovereignty: mgm is committed to open standards, open-source technologies, and independent architectures — an approach that aligns with the stated goals of the cooperation and positions mgm for greater visibility.
- Shaping the regulatory environment: Through DATABUND, mgm and other members can actively participate in developing standards, procurement models, and funding programs.
- Delivering tangible results in practice: mgm demonstrates that mid-sized companies don’t just have a seat at the table — they can deliver. A current example is the “A12 Public Sector Platform” (PSP) project, in which mgm is actively contributing to the development of modern, interoperable government solutions — practical, and with real added value for public agencies.
Public Administration Digitalization Needs the Mid-Sized Sector
Germany has a lot of ground to make up when it comes to e-government. The Online Access Act (OZG), the modernization of government registries, the Growth Opportunities Act — the agenda is long and the requirements are complex. Successful implementation is not possible if the companies that already possess the necessary expertise and technical experience are left on the sidelines.
The cooperation agreement between the BMDS and DATABUND is therefore more than a symbolic gesture. It is a commitment that sustainable digital transformation of public administration can only succeed when the federal government, states, municipalities, and the specialized IT industry all pull in the same direction.
This also applies to the Germany Stack: the cooperation creates the political framework to rapidly scale existing approaches — such as open-source components, interoperable interfaces, and sovereign infrastructure solutions — without having to wait until 2028.
mgm welcomes this development and will actively seize the opportunities arising from this partnership — in service of a modern, citizen-centered public administration in Germany.
Further information:
- Website: A12 for the public sector
