Google takes advantage of federal cost-cutting with steep Workspace discount
Ars Technica 2025-04-10
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. Google and the federal government have announced an agreement that makes Google Workspace available to all agencies at a significant discount, trimming 71 percent from the service's subscription price tag.
Since Donald Trump returned to the White House, the government has engaged in a campaign of unbridled staffing reductions and program cancellations, all with the alleged aim of reducing federal spending. It would appear Google recognized this opportunity, negotiating with the General Services Administration (GSA) to offer Workspace at a lower price. Google claims the deal could yield up to $2 billion in savings.
Google has previously offered discounts for federal agencies interested in migrating to Workspace, but it saw little success displacing Microsoft. The Windows maker has enjoyed decades as an entrenched tech giant, leading the 365 productivity tools to proliferate throughout the government. 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 that pushed Microsoft 365 to all corners of the Pentagon beginning in 2020.