"Cloud computing is becoming increasingly prevalent among business in New Zealand and Microsoft delivers technologies that offer greater choice and flexibility, for IT and end-users," he says.

"The recent introduction of Microsoft Online Services makes a range of leading Microsoft technologies available in the cloud including Microsoft Exchange and Microsoft SharePoint."

Voice says the biggest challenge of the project, which will cost $1 million in fees over three years, was bandwidth. However, this turned out to be caused by badly configured, locked down browsers.

"Today's announcement is further proof of the cloud computing revolution -- mature technology delivered the right way by a fast moving and important local channel partner," Google's head of enterprise for Southeast Asia, Richard Suhr, says in a statement.

Fronde CEO Ian Clarke says the deal is important for Fronde and Google, and an endorsement of their belief that cloud computing will drive the next major change in IT.