How Elon Musk’s DOGE work may help Google crack one of the biggest Microsoft business

has reportedly announced a significant move to aggressively target the US federal government software market, traditionally dominated by Microsoft. The company will offer substantial discounts on its Google Workspace suite of business applications to federal agencies, aiming to capitalise on the current administration’s push for cost reduction and hit Microsoft's long-standing grip on government contracts.
This initiative comes as US President Donald Trump’s administration intensifies its efforts to minimise federal spending. This drive is being spearheaded in part by the Department of Government Efficiency (DOGE), a reform team led by billionaire Elon Musk, which is actively working to cancel existing contracts and reduce the size of government agencies.
According to a statement released by Google (via Reuters), the newly-established agreement with the US General Services Administration (GSA) includes a potential discount of up to 71%. The company said that widespread adoption of this offer across federal agencies could result in cost savings of as much as $2 billion.
The GSA, the agency responsible for managing federal property and services, was notably among the initial agencies targeted for potential layoffs by the Department of Government Efficiency (DOGE).

In its statement, the GSA acknowledged the agreement, stating, “The Workspace agreement marks a step forward in GSA's work with Google and other companies to create cost savings for the federal government.”
The pricing structure under this new agreement will be based on the “volume of the entire government,” a departure from previous arrangements that offered lower discounts through individual agreements with specific agencies, the GSA clarified.
These significant discounts, which are effective until September 30, have the potential to significantly enhance Google’s presence in government spending contracts, an area where Microsoft has historically held a commanding position.
Amazon also looking to dent Microsoft’s hold in federal contracts
Recently, a report by Bloomberg said that both Google and Amazon have been lobbying in Washington to become a bigger software provider and cloud computing, respectively, for government agencies.
Alex Haurek, a Microsoft spokesperson, said that it’s “concerning but unsurprising to see certain industry players trying to manipulate decision makers, through shadowy front groups, rather than competing transparently on price and quality.”