theodp writes "Touring a high school with Chicago Mayor Rahm Emanuel, Google Chairman Eric Schmidt informed students they're eating Google 'dog food' because Microsoft's costs money. 'Why would we use Google Docs over like Microsoft Word?' a teacher asked the class. 'Because it's free!' exclaimed a grinning Schmidt. 'Schmidt's comment,' writes GeekWire's Blair Hanley Frank, 'highlights one of the risks Microsoft faces in the academic world. While Microsoft has started offering schools incentives to use Office 365, including free licenses for their pupils, the company is under greater pressure from its competitors. As more schools like Chicago's face budget shortfalls, free and discounted products from companies like Google and Apple, especially when attached to financial assistance, start looking better and better.' Chicago Teachers Union president Karen Lewis said she'd rather see companies pay more in taxes and fund schools that way, rather than relying on their charity or free software."