Google has won a contract from the US Department of Interior to supply online email and collaboration services, beating out Microsoft in doing so.

The contract is valued at $35 million over a period of seven years, and will see 90,000 government employees shift from on-premise email systems, across to Google's cloud-based products.

It's an even sweeter victory for Google given that back in 2010, the Department of Interior (responsible for federal land and resources, not decorating) chose to award a five year contract to Microsoft's online suite. Google sued alleging favouritism over the bid criteria, and the Department said it would reconsider alternative bids.

A Google spokeswoman said: "We're honoured that the Department of the Interior has selected Google Apps for Government, and we look forward to working closely with the DOI to give employees new communication tools."

A Microsoft spokeswoman emphasised the fact that the Department still overwhelmingly uses the Redmond-based firm's products in the workplace, rather than Google's.

She stated: "[Microsoft] has a positive, longstanding relationship with the Department of the Interior and we are working on a number of enterprise-wide initiatives with the agency. Although we are disappointed by this award, we will engage with our partners and DOI to review and understand the reasons for this decision."

Source: Wall Street Journal