Juicy government contracts Google takes advantage of federal cost-cutting with steep Workspace discount Google will knock 71% off government Workspace subscriptions for a limited time. Ryan Whitwam – Apr 10, 2025 2:49 pm | 11 The Google Workspace icons. Credit: Google The Google Workspace icons. Credit: Google Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only   Learn more Google has long been on the lookout for ways to break Microsoft's stranglehold on US government office software, and the current drive to cut costs may be it. Google and the federal government have announced an agreement that makes Google Workspace available to all agencies at a significant discount, trimming 71 percent from the service's subscription price tag. Since Donald Trump returned to the White House, the government has engaged in a campaign of unbridled staffing reductions and program cancellations, all with the alleged aim of reducing federal spending. It would appear Google recognized this opportunity, negotiating with the General Services Administration (GSA) to offer Workspace at a lower price. Google claims the deal could yield up to $2 billion in savings. Google has previously offered discounts for federal agencies interested in migrating to Workspace, but it saw little success displacing Microsoft. The Windows maker has enjoyed decades as an entrenched tech giant, leading the 365 productivity tools to proliferate throughout the government. While Google has gotten some agencies on board, Microsoft has traditionally won the lion's share of contracts, including the $8 billion Defense Enterprise Office Solutions contract that pushed Microsoft 365 to all corners of the Pentagon beginning in 2020. The GSA notes that Google's hefty 71 percent discount is based on the volume of the entire government. In the past, Google's discounts were offered on an agency-by-agency basis. This new lower rate is available to all agencies, and Google might get some of them to bite. Cutting costs has been among the highest priorities for federal agencies since Musk's DOGE group began making its presence known. Like Microsoft 365, Google Workspace is certified for FedRAMP High, which guarantees security and privacy features compliant with government standards. Google says its new offer to the government also includes Gemini and NotebookLM, which is possible because Gemini is reportedly the first AI assistant to receive FedRAMP High authorization. Importantly, the lower subscription rates are not permanent. The GSA confirms Google's 71 percent discount is only available through September 30, 2025. Even with the brief discount window, the government's push for lowering costs could help Google integrate its products into agencies that are undergoing seismic shifts. As processes are rebuilt around smaller staffs and more limited mandates, Google could become entrenched the way Microsoft has been for years. Ryan Whitwam Senior Technology Reporter Ryan Whitwam Senior Technology Reporter Ryan Whitwam is a senior technology reporter at Ars Technica, covering the ways Google, AI, and mobile technology continue to change the world. Over his 20-year career, he's written for Android Police, ExtremeTech, Wirecutter, NY Times, and more. He has reviewed more phones than most people will ever own. You can follow him on Bluesky, where you will see photos of his dozens of mechanical keyboards. 11 Comments