In what's becoming a trend, Washington D.C. joins the ranks of more than 500,000 businesses and organizations with its head in the clouds. District CTO Vivik Kundra inked an agreement with Google that will port the organization's 38,000 employees over to Google Apps.

According to Bloomberg, the agreement, which was signed back in June, is worth almost $500,000 a year and will include applications like Gmail, Google Docs, Google Video for business, and Google Sites to District employees. The latest win comes as another notch in Google's belt, as its Google Apps has been well received since launching a little over two years ago as Gmail for your domain.

But Google isn't the only one challenging Microsoft in the productivity world. Zoho also offers a collection of online apps and managed to snag GE as one of its customers. Meanwhile, Microsoft has largely been content to ride the success of its offline Office suite, but things could get interesting if cloud computing continues to pick up steam.

Image Credit: Google