Google Gets to Go Head-to-Head with Microsoft for Multi-Million Government Contract

Google has won the right to compete with Microsoft for a lucrative government contract worth almost $50 million, 36.7 million Euros, to the winner. The company will go head-to-head with Microsoft, pitting its cloud-based office and collaboration suite Google Apps against Microsoft's products.

Initially, the US Interior Department only allowed Microsoft to bid for the contract. Microsoft products are already used by most government agencies.

Technically, everyone was allowed to bid, but the requirements were crafted so that only Microsoft products would qualify for it.

Google filed a lawsuit to enable it to compete for the contract as well. In the lawsuit, it said it was being unfairly left out of the bidding process.

Now, the US Interior Department has decided to re-open the bidding and will allow Google to compete as well, it was revealed in a court document from the lawsuit.

This also resulted in the lawsuit being dismissed by the judge. Google, understandably, is happy about the result.

"We’re pleased with the outcome of our discussions with the Department of Interior, and look forward to the opportunity to compete for its business and save taxpayers money," Google said in a statement.

Microsoft is perhaps less enthusiastic about the development, but is hiding it rather well and has said that it welcomes the competition, but that it believes it has the right products for the job.

"We are pleased the case has been dismissed, and that the Department of Interior can proceed to obtain the secure email system it needs," Microsoft also stated.

"We are fully prepared to continue competing for the Department's business and are confident that we offer the best cloud solutions and value," it said.

It's a big win for Google, but it's in no way a guarantee that it's going to be successful in its bid. That said, at least it gets to say that its products can compete with Microsoft's.