Use of Free and Open Source software has started to get an increased level of functionality and trust, following the existence of a variety of solutions and supporting communities across the Web. In this paper, the current penetration and usage of Free and Open Source Software in the municipalities of Greece was recorded, as well as its potential especially when compared with the current state of computerization and hardware level. Conclusions were drawn on whether the municipalities will benefit from the usage of Free and Open Source Software, in technical and financial terms, as well as proposals are submitted in how the municipalities can benefit from an uptake in technology (especially Cloud computing), given their existing IT staffing and municipality organization. The possibility of improving the provided services to the citizens by using this software is also examined as well as cost aspects that can be improved.