LA Spends Microsoft’s Money On A Google Contract

Google (GOOG) just landed a nice 5-year, $7.25 million dollar contract from Los Angeles to overhaul its 30,000 users’ email with Google Gmail and Apps.

(For those who are trying to figure out how much Google might eventually make from Apps, that’s $1.45 million per year, or $48/year per seat.)

What’s funny though is how LA is paying for Google’s software.

It turns out LA will use $1.5 million from a settlement in a 2006 class action lawsuit against Microsoft (MSFT) to help pay the bills. The money comes from a $70 million lawsuit by six California counties alleging Microsoft used its monopoly status to price gouge. – Silicon Alley Insider