The Los Angeles City Council voted unanimously to switch to Google's cloud computing email services.
The $7.25 million contract, which will place all 30,000 Los Angeles city employees in Google's cloud, bodes well for the company's bid to compete with Microsoft as a software provider for businesses and government agencies.
The decision came after a year of lobbying from both software companies. Parties on all sides theorize that smaller cities may see the recent decision in Los Angeles as an endorsement of Google's cloud-based Apps, and may follow suit.
Microsoft's Office suite still dominates the software market for businesses and government agencies. Next year, the company plans to release web-only versions of a number of Office programs, including Word and PowerPoint.
In adopting cloud computing technology, the city of Los Angeles follows in the footsteps of a number of high-performing business firms. A recent poll commissioned by software firm CCH found that 30 percent of high-performing firms use cloud technology, and that another 55 percent expect to do so within the next three years.
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