Google Gains Territory in the Federal Government

For some time now, Google has been pursuing the ambition to expand online search advertising into other industries. Such examples include its automated radio and newspaper advertising services, though, they had to cut these programs because of the economic recession that doesn't afford them the luxury to unnecessarily spend money. Google Earth, on the other hand, was a raving success among interest groups all over the world. Beyond their elaborate search tactics and maps, however, they have also created Google Apps, a collection of word-processing, email, and spreadsheet tools that directly compete against their great rival Microsoft. With all of these formidable programs, Google is armed and ready to become one of the "big players" and get their bite of the federal government before it's too late.

Long before the concept of Google was even thought up by two students still in college, Microsoft had been working with the federal government already. Now, Google is trying to enter the game, and they're doing a good job at it, too. The government finds use in the Google search technology to recover articles and documents that are hidden among millions of other documents in the huge database. In addition, the federal government has found use for Google Earth. In fact, the Forest Service uses the Google Earth technology to map out the forests and spot wildfires before they become far too dangerous. Far more importantly, though, the federal is looking at Google Apps out of the corner of its eye, while still holding on to Microsoft. Despite the traditional use of Microsoft within the federal government, "change" again seems imminent with President Obama's appointment of Chief of Information Officer Vivek Kundra. The Obama administration created the position for the purpose of running the government more efficiently, a vaguely stated duty that has unknown limits at this time. However, what is clear is that Kundra, while working as the District of Columbia's chief technology officer, introduced the switch from all Microsoft programs to Google Apps. What Microsoft is hoping is that he doesn't do the same as Chief of Information Officer within the federal government.

As of now, though, Google's stake in the government is negligible. In 2008, 97% of Google's revenue came from online advertising, implying that federal sales have a very insignificant impact on Google's business. But, with the stimulus package around the corner, and the budget of 2010 which may allocate not $20, but $70 billion to technology, Google's future is certainly looking favorable.

John Letzing, "Google in position to capture Uncle Sam's spending". MarketWatch.