With its web-based Google Apps suite of software, Google is trying go up against Microsoft to make some headway in the enterprise accounts area. While they’re likely facing some resistance in a lot of companies who are ingrained in the Microsoft way of life, they are making some headway. Washington D.C. is one such example, where they’ve decided to shun the idea of spending millions on a new intranet for city employees based on proprietary portal software, and instead saving money by using Google Apps.
Google Apps will not entirely replace Microsoft Office for D.C.’s 38,000 municipal employees, however officials have indicated that they are seeing more and more staff migrating to using Google Docs instead of Office.
The city has been testing the intranet out with employees since June 2007. Currently they use Gmail for the e-mail service, and Google Apps for documents and spreadsheets. They pay Google about $475, 000 per year in licensing fees, which is significantly less than the $4 million they’d spend if they’d decided to go proprietary.