After years of rising IT costs and influence by the Obama Administration, the Los Angeles City Council voted unanimously to switch all departments to Google's cloud computing email services, which includes Google Docs.

The contract, worth $7.25 million, places 30,000 Los Angeles city employees in Google's cloud. 

The decision came after a year of lobbying from both Microsoft and Google. Parties on both sides theorize that smaller cities may see the recent decision in Los Angeles as an endorsement of Google's cloud-based Apps, and may soon follow. 

Microsoft's Office suite still dominates the software market for businesses and government agencies. Next year, the company plans to release web-only versions of a number of office programs, including Word and PowerPoint.

In adopting cloud computing technology, the city of Los Angeles follows in the footsteps of a number of high-performing business firms. A recent poll commissioned by software firm CCH found that 30 percent of high-performing firms use cloud technology, and that another 55 percent expect to do so within the next three years.