The use of ICT in world has increased significantly in the last two decades. This increase is far pronounced in developing countries. While the use of ICT promises to be a major instrument in poverty reduction, it is clear that ICT is not used by the majority in developing countries. Tanzania being one of the developing countries its usage of ICT is mainly by the minority. There are a lot of reasons which have contributed for lower usage of ICT. One of the main reasons is the availability and expense of software (applications and Operating Systems). In this paper we argue that the use FOSS may go a long way in reducing the cost of software. Once FOSS is widely available then the use of ICT for poverty reduction mission may be realized, since the entry level and the total cost of ownership (TCO) will have been reduced. The paper further gives a critical approach, in analyzing the failure and challenges in adopting OSS. The article examines reasons for failure and challenges. It also has sections on OSS desktop and field survey, usage reports, reflections and vision for future including proposed conceptual model for Tanzania set up and ends with some conclusions.