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LA to Go with Google Apps on Condition . . .

The switch is supposed to save the city about $5 million in service costs over five years

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The city of Los Angeles has okayed a $7.2 million deal with CSC to rip out a lot of its existing Novell GroupWise e-mail systems and whatnot and replace it with Google Apps provided CSC agrees to pay a pre-set penalty if there's a security breach. They still need to dicker about that according to the AP.

The city pushed off the decision when the cloud started having a string of problems and the cops and the City Attorney's Office are worried about data security.

The councilman who introduced the penalty amendment is quoted as saying, "It's unclear to me whether we're on the cutting edge or if we're on the edge of a cliff about to step off."

Novell offered free upgrades but couldn't save the deal. Microsoft and others tried for the contract too. Failure to win it is seen as a black eye for Microsoft and showcase site for Google. LA says it's sticking with Office.

The switch to Google Apps is supposed to save the city about $5 million in service costs over five years. The District of Columbia is also making the migratory trek.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

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Most Recent Comments
Henry Cholakyan 10/30/09 02:04:00 PM EDT

Why is costing the city 7.2 million dollars for 30,000 employees. The annual cost of Google Apps per user is $50.00 without volume discount. The cost for 30,000 should be 1.5 million not 7.1 million.

Where is rest of the money going? The migration is from Groupwise to Google Apps is a snap. On top that, Google Apps is not enterprise ready. So if your put $100,000 into every council members pocket that another $1.2 million.

Where is rest of the money going? LA City citzens wake up and smell the coffee. This money is going down the drain.