Google Wins Lucrative Government Contract

Google has obtained a lucrative contract from the US General Services Administration to provide Google Apps to its 17,000-strong workforce.

Under the $6.7 million contract, Google with work with Unisys, Tempus Nova, and Acumen Solutions to migrate the GSA to its cloud-based e-mail platform and provide access to other Google Apps services. The GSA is expected to save up to 50 per cent in cost over the next 5 years.

Google's victory has not gone down well with rival Microsoft, which expressed surprise about how Google managed to get the contract.

Tom Rizzo, senior director of Microsoft Online Services, wrote in a blog post: “Regardless of how organisations are thinking about the cloud, Microsoft provides a choice for their productivity needs; on premises, in the cloud or as a hosted solution. Google does not offer any such choice.”

He pointed out that the State of Minnesota and New York City had already said 'No Thanks' to Google and chosen Microsoft to provide services in the cloud.