Los Angeles adopts Google e-mail system for 30,000 city employees
latimesblogs.latimes.com
latimesblogs.latimes.com
::evil laugh::
<Edit> My first line comes across as snarky, and I apologize.
But it still concerns me about relying on on-line services when I have read so many articles about one company or another either losing information, selling the product to someone else who has a different agenda, or deciding to abandon a product (among other actions).
Fortunately, both GMail and Google Docs can do so, as noted recently in another thread.
From that link, there was a "Microsoft Online Services Cost Estimator" (http://www.microsoft.com/online/estimator/default.aspx). I input 30,000 users for Exchange and it estimated $228,000/month. If we assume that the $7.25 million was for 5 years, then Gmail for 30,000 users costs only $120,833/month, which is theoretically $1.3 million/year less than MS hosted Exchange.
For some context on how much of a big deal this is or isn't, according to the LA city budget (http://budget.lacity.org/), their total IT budget is about $100 million/year.
(That's all assuming that LA is getting Google Apps, and not just email.)