Microsoft chief executive Steve Ballmer and New York City mayor Michael R. Bloomberg recently announced new cloud based services for New York. This agreement will boost competition for similar services offered by Google. Under this contract, about 30,000 New York worker will use Microsoft’s Business productivity online suite. This information will be sent to Microsoft data centers and they will use various Microsoft services like Office which includes Word, Excel, Outlook and PowerPoint.

Form next year onwards, workers will be migrated to new Office 365 suite. It will increase more technology uses in New York City, deputy mayor Mr. Goldsmith told reporters that most of the workers do not have even e-mail account. This agreement will increase use of technology among them and workforce will do more technology oriented work now onwards.

There is huge competitive pressure from Microsoft’s rivals like Google and IBM and this agreement will boost its presence in cloud computing. The agreement value will be $20 million annually and New York will save over $50 million in next five years. There will be no need to purchase as many computing hardware as many people work on that, because of the cloud computing they will work online. Cloud computing is important as it consolidated power in data centers and uses the internet to connect users to applications and data stored in data centers.

Goldsmith also said that we took advantage of the competition among software companies in cloud computing. Microsoft’s step is the result of this competition from Google as Google is also providing similar product online at simple rate of $50. But Microsoft’ product is broader and Google is yet to match the product. Microsoft is also aware of the consumer’s trends to use Google cards and they are doing everything to change the trend. Under this agreement we also learnt that there will be upgrade of Windows 7, some server software and access to Microsoft’s cloud computing hosting and programming: Azure. This agreement will also help in trimming New York data center from 50 to one.

Microsoft will make three layers of workers based on the application they use the most and give access to them to use the applications. New York administrators also said that they do not know how many software agreements exist in the city. The Microsoft’s Office 365 will boost customer-relationship management program and also boost new innovation in New York City work approach.

Mr. Goldsmith also supports his counterpart Mr. Bloomberg and comments about the Pizza deal and said we are excited about the Microsoft and New York cloud computing deal and it will extend the technology use in our sector. He also said that we are looking forward to use these services to save our cost and to use more and more technology in our work.

However a vice president of Microsoft said that there will be no changes in the Microsoft’s licensing model and we will stick to the same model.