is this going to be hit
It will impact but not as much as people think. Most of these contracts are multiyear in nature so they are not going to be impacted the first year. Also what are they going to do? Just stop using Office? I don't think so.
The government has $16,000,000,000,000 debt and is facing Fiscal Cliff budget cuts. Don't count on Uncle Sam buying many Windows 8 PCs for the next few quarters.
Not important...at least this is not SAIC...I guess there is one saving grace. Northern VA is about to melt into recession as the government cuts their blood line off.