Microsoft, Google Fighting For U.S. Government Contract (GOOG, MSFT)

In a report from the Wall Street Journal, Microsoft MSFT and Google GOOG are vying for a government contract to supply Web-based email and other software to the federal government. Google and Microsoft are competing against one another to take the job of providing email to the General Services Administration, the U.S. agency that is in charge of government procurement and manages federal property. If Google were awarded the contract, it would be seen as a huge coup for Google as more than 90% of the federal government uses Microsoft Exchange for email, according to Curt Kolcun, vice president of Microsoft's public-sector business. A move into cloud-based computing applications could help trim the federal government's $76 billion annual budget for computer equipment and software according to the Obama administration's chief information officer. Shares of Google are trading down $43.83‎ to $486.23 and Microsoft shares are trading up 26 cents to $26.07.