U.S. General Services Administration is going Google.
Google has been stepping up efforts to get its Apps Enterprise Messaging, Docs and collaborative suite into government services. While it has had success in state and local governments as well as state education, it has largely been left out of Federal agency contracts (Los Alamos National Labs going Google is the biggest exception I can think of).
Google (GOOG) has been busy addressing increased security requirements that government agencies require and now houses government accounts on seperate secure servers away from other business and education customers. This hasn’t been enough to get noticed in some instances, however. Google also sued the Department of the Interior for not adequately considering Google Apps.
Today, Google has its first big Federal Government win…
Google announced a $6.7 million contract with the US GSA today. While the ‘big win’ isn’t monetarily significant to Google’s billions of dollars of quarterly advertising revenus, it is a huge psychological win. Google was up against Cloud services from Microsoft (MSFT) among other competitors and those 15,000 seats will be a recurring revenue stream for Google.
Now that one big Federal Agency has gone Google, winning other contracts will be much easier. As more agencies move to Cloud services from On-premise systems, Google now can show it can compete and win against the ingrained Microsoft Exchange platform.
The Google Apps productivity suite will be deployed to 15K GSA employees. The five-year agreement is expected to reduce the GSA’s email costs by 50%.