Didn't they try to go FOSS in Germany in the past, but that made Microsoft very unhappy? Didn't last by memory.
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I know of one case where a city has switched over to FOSS software quite successfully. Ultimately the problem in Germany is that everything is decentralized and nobody works together. So instead of the state or country government providing a FOSS solution for the schools needs every single school has to figure it out individually. So they usually end up picking the "easy" option and just pay astronomical prices for Micro$oft Services. I really hope this pilot is successful because frankly the systemic issues causing the lack of FOSS in government funded services will not be solved by anyone in power for the foreseeable future.
The case you're referring to was the adoption of a Linux based OS (LiMux) by the city administration of Munich - here is the Wikipedia article on the subject.
Unfortunately, Munich totally rolled back Linux adoption for some shady reasons later on:
Microsoft had announced in 2013 its willingness to move its German headquarters to Munich in 2016, which according to Reiter though, is unrelated to the criticism they've presented against the LiMux project.