This is the pinnacle point in a series of high profile anti-Google Apps moves which could be a turning point in the company's offering of their Live@edu competing service.
The migration from their old Exchange 2003 on-site service to cloud-accessed Exchange 2010 has also been one of the quickest deployments ever seen, with over half a million accounts being migrated over in a single weekend. There is no doubt that the deployment was assisted by existing Microsoft technologies which would have made the transition smoother.
Google's Apps for Education website states that 8 million students worldwide are using their product, over a third less of what Microsoft currently serves. Though many private industries and organisations are favouring Google Apps for their collaboration features, the student market is still struggling to consider Google over Microsoft in the outsourcing arena.