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Google misses deadline to takeover L.A.'s e-mail system

July 25, 2010 |  3:15 pm
Google Inc. has missed the deadline on its high-profile contract to take over Los Angeles' e-mail system, leaving nearly 20,000 city employees on an aging system that the city is paying the Internet search giant $7.25 million to replace.

The delay marks a significant setback for Google's push to enter the lucrative business of shifting companies and governments to computer systems that reside online. The contract with the city is considered a marquee deal and is being closely watched by other governments looking to move to "cloud computing."

Since winning a battle for the contract with rival Microsoft Corp. last year, Google has run into roadblocks at the Los Angeles Police Department, which has strict rules about the way its data is secured.

Until Google can address those concerns, city officials say, LAPD will continue to use the old system — in effect forcing the city to pay for both the new and old e-mail programs at an additional cost that could rise to more than $400,000 over the next year.

Read the full story on the Google e-mail deal here.

-- David Sarno