Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Google, Unisys Win Contract to Handle E-Mail for GSA

Don't Miss Out —
Follow us on:

Dec. 1 (Bloomberg) -- Google Inc. will work with Unisys Corp. to handle e-mail for the U.S. General Services Administration, beating out Microsoft Corp. for the federal contract.

The $6.7 million deal will move e-mail services to off-site data centers, the GSA said today in a statement. The contract will help lower costs by 50 percent over the next five years, according to the agency.

Google, looking to get more revenue outside of its traditional search business, has branched out into communications and business software. More than 3 million businesses run Google Apps, which includes e-mail, documents and spreadsheets, offering an alternative to Microsoft’s Office. The software is delivered to users via the Internet -- an approach called cloud computing.

“Cloud computing has a demonstrated track record of cost savings and efficiencies,” Casey Coleman, the GSA’s chief information officer, said in a statement. “With this award, GSA employees will have a modern, robust e-mail and collaboration platform that better supports our mission and our mobile workforce, and costs half as much.”

Google, based in Mountain View, California, rose $8.64 to $564.35 at 4 p.m. New York time on the Nasdaq Stock Market. Microsoft’s shares climbed 78 cents to $26.04.

Microsoft said it was disappointed that it wasn’t chosen. The company’s approach meets the stringent requirements of government, said Curt Kolcun, vice president of the U.S. public-sector unit at Redmond, Washington-based Microsoft.

“We are working with several agencies who see this as essential,” he said in a statement.

To contact the reporter on this story: Brian Womack in San Francisco at bwomack1@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.