Google Beats Out Microsoft For LA City E-mail Contract

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Under the contract, the city's approximately 30,000 employees will use Google's e-mail and on-demand office applications, according to a story in The Wall Street Journal.

The $7.25 million contract is with systems integrator Computer Sciences Corp., which will use the Google applications to replace older applications from Novell that city workers use today. The contract is contingent on CSC agreeing to pay a penalty if a security breach occurs, according to an Associated Press story.

The City Council's unanimous 12-0 vote approving the Google deal came despite concerns raised by the city's police officers' union, the LA City Attorney's Office and privacy advocates about the security of data stored online rather than in on-site servers.

Google's e-mail has suffered several well-publicized service outages this year, including a prolonged outage on Sept. 1 and another back in February.

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Microsoft, which is expected to begin offering Web-based versions of its Office applications sometime next year, was a bidder for the LA city government contract. But Google defeated Microsoft in bidding for the job, Councilman Tony Cardenas was quoted as saying in The Wall Street Journal story.