July 28, 2010 – Google has failed to meet a June deadline for the high-profile contract to supply email and collaboration software to the City of Los Angeles. Security concerns seems to be stumbling block.

Google beat out Microsoft for this high profile contract though it was only worth $7.25 million — a tiny fraction of Google’s quarterly revenue. This victory was especially sweet as Google continues to gain ground on Microsoft’s traditionally strong business of supplying productivity software, such as email, word processing and spreadsheet tools, to businesses and government agencies. News of this delay was brought to our attention by MarketWatch in their article, “Google misses deadline for high-profile L.A. contract”.

Security is an important issue causing part of this delay, and city officials acknowledge some of the delay comes from their own shop. However, Google has stepped up to cover any continued costs while the issues are worked out on both sides. Security is important and in the world of cloud computing, it can make even the most experienced professionals worry.

Melody K. Smith

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