Google has made a strategic move to provide its Workspace service to US government agencies at a heavily discounted rate of 71%, aiming to capitalize on current federal cost-cutting measures. This new agreement could potentially save the government up to $2 billion. Despite previous efforts to penetrate Microsoft's established dominance in government office software, mainly through the Defense Enterprise Office Solutions contract, Google is optimistic that this new pricing strategy will garner more traction and expand its presence across federal agencies.
Google has long been on the lookout for ways to break Microsoft's stranglehold on US government office software, and the current drive to cut costs may be it.
The government has engaged in a campaign of unbridled staffing reductions and program cancellations, all with the alleged aim of reducing federal spending.
Google claims the deal could yield up to $2 billion in savings.
While Google has gotten some agencies on board, Microsoft has traditionally won the lion's share of contracts, including the $8 billion Defense Enterprise Office Solutions contract.
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