For what it's worth, this was how Microsoft used to compete back in the day. They would go in to a big orgs like this that used to have Novell or Lotus contracts worth tens of millions and offer up prices per seat that were ridiculously cheap.

One day, Google will feel the sting as well.

why $9.5mil - isn't it free for educational institution?

anyway, if google focuses only on schools and universities then half the battle is won against MS as millions and millions of student will have their primary email from gmail and when they join the workforce they will automatically become a marketing tool for google to implement similar products in the companies.