Rival companies Google and Microsoft fight on many fronts -- Internet search and advertising, for example, and operating systems. A newer battlefield is Southern California, where the companies are competing for a $7.25 million contract to provide email and office software for the City of Los Angeles.

The contract fight is significant because it could help determine whether upstart Google is ready for the big time when it comes to its cloud-based apps, according to David Sarno, business reporter for the Los Angeles Times.