Google walks away with a large Microsoft Customer?

Here is the latest word around:

There are rumors of high treason at the court of King Microsoft as the New South Wales Department of Education has turned to Google for its email needs. Said to be the biggest single customer around, with over 1.3 million users under its ‘control’ the department has ended its 5 year contract with Microsoft and signed a three year deal which will see it use Google’s Gmail.

According to the agreement, before the end of the year Google will have set up email accounts for 1.3 million students and teaches and provide them with “a world-class package of services.” Snatching the NSW Department of Education from Microsoft’s was probably a tough job but represents a big win for the search and ad giant. Still, this victory didn’t come cheap as Google is charging $9.5 million for its services while Microsoft got $30 million and for offering some 100 times less storage space per account.

Looks like Google is betting big on “Low Cost” to win new customers

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