One important note: It's not the admin of the system that's in question here, that is government ran.
The company in question only provides cloud services, and has no access to any data.
> I just don't understand why the government won't consider funding it. It's a public infrastructure service at this point.
It has been 9 years since the last centrist ("purple") government in the Netherlands. 24 years since the last left-wing led government. Nothing more to it.
It's just decades of Neoliberal "outsource government tasks to the free market" policy. There really isn't any other reason; The Dutch government has multiple divisions which are quite good at IT. It could choose to do so at any moment, it just doesn't.
Voters just didn't care. The system worked fairly reliably. So they just kept voting for a very charismatic politician, regardless of the long term consequences.