Google’s 71% Discount to Federal Agencies: What SAM Managers Need to Know—And Why SIE’s Approach Makes the Difference

A seismic shift is happening in federal IT procurement.

In a landmark move, Google has partnered with the U.S. General Services Administration (GSA) to offer a 71% discount on its Workspace business apps suite to federal agencies. If widely adopted, this could represent $2 billion in taxpayer savings and challenge Microsoft’s long-standing dominance in government software.

This isn’t just headline news—it’s a signal to Software Asset Managers (SAMs) and IT Asset Managers that change is here. But while the price tag is grabbing attention, the real story lies in the strategy behind the software.

Microsoft has long been the de facto software environment across the federal government. From Office 365 to Azure, agencies have built entire ecosystems around Microsoft tools, licensing models, and support structures.

But now, with Google entering the federal space at a massive discount through GSA’s strategic agreement, agencies are suddenly faced with real vendor choice—and real vendor complexity.

For SAM leaders, this shift introduces:

• New platforms to evaluate
• Contract renegotiations to consider
• Integration and compliance issues to address

This isn’t about replacing one vendor with another. It’s about managing risk, cost, and performance in a new, more competitive landscape.

Yes, a 71% discount sounds compelling. But cost alone isn’t the full equation.

What the deal doesn’t cover is just as important:

• Migration and change management
• Training and adoption support
• Audit and license compliance during transitions
• Long-term impact on productivity and system integration

As agencies explore the Google alternative, SAM managers must ask the hard questions:

• What’s the total cost of ownership?
• What are the contractual pitfalls?
• How will this affect our existing software governance model?

Without a clear roadmap, savings can quickly be lost to inefficiencies, rework, or audit risk.

At SIE, we’re proud to have played an advisory role in the GSA-Google deal—helping lay the groundwork for smarter procurement strategies across government.

But what truly sets us apart in this moment of change?

• Software-Agnostic, Tool-Agnostic Advice: Unlike some firms that push preferred products or platforms, we offer objective, client-first guidance rooted in what’s best for your agency.
• Senior-Only Experts: Every engagement is led by seasoned professionals. No bait-and-switch. No junior advisors. Just experienced minds solving complex problems.
• Federal SAM Expertise You Can Trust: We’ve helped agencies save over $50 million in recent years and manage $500 million in annual software spend—all while reducing risk and improving compliance.

Whether you’re assessing Google’s offer, renegotiating with Microsoft, or simply seeking clarity on your SAM strategy, we’re here to help.