However, given that most small/medium size companies tend to be Microsoft shops, not sure how it would take to move everyone into this direction.
FOSS doesn't matter when you can get someone to burn DVDs for you at the shop around the corner.
Now this type of business will end, or at least it will be very obvious who is doing favours to who.
If you don't, use Google Translate.
Their member list is composed both by huge companies and small ones, and judging by the areas of expertise of their members, they are trying to offer solutions for pretty much everything a public sector entity needs.
I don't have any problems with proprietary software, but file formats, communication protocols or any other type of interface should be open.
Looking forward how it will evolve.