NSW switches 1.5 million students to Gmail

Michael Arrington at TechCrunch is reporting that New South Wales Department of Education in Australia has accepted a bid to switch over the email accounts of 1.5 million students over from Microsoft Exchange to Gmail (via Google Apps).

NSW DoE was unahppy because their 2004 MS Exchange installation cost 33million and took 3 years. It’s unclear why the system took so long to setup. The Gmail roll-out will increase current email storage allocated for each student from 35MB to 6GB.

The move represents a big win for Google – which is breaking into Microsoft’s mail and office collaboration market, at every scale. Last year Macquarie University elected to shift the email accounts of its 68,000 students and recent graduates onto Gmail. This new instillation will create what’s being reported as the single largest private deployment of Gmail. On the other end of the scale small and medium business are also increasingly switching away from Microsoft Exchange and Outlook, to SaaS services like Google Apps, and Yahoo’s Zimbra.