Google Does Washington

The District of Columbia has made a major shift and has dumped Microsoft is favor of Google. It seems that the computer network was being plagued by cost over runs and viruses were running rampant. In comes Google which offers the city IT bigwig the use of their online applications for a paltry $500K. The article also states:

Google is cracking Microsoft’s hold in the business- software market with skirmishes for orders like Kundra’s. Microsoft gets $19 billion in annual sales from applications such as Office and beat back a challenge for Procter & Gamble Co.’s business this year. Google won clients such as Genentech Inc., and D.C. provides a glimpse into how the Web company is gaining ground.

What the article doesn’t cover is how well the system is working.  Google also states that they have 3,000 universities and small businesses signing up very day to use their web applications.

What do you think. Does Microsoft have anything to fear?

Comments welcome.