Google pulled off a coup last year when it was awarded a contract worth $7.25 million by the City of Los Angeles to move 30,000 employees to its cloud-based email solution. It was a huge triumph not only because CSC’s (Computer Sciences Corporation) proposal for Google Apps – both companies have joined forces for this project – was picked from 15 proposals but also due to the fact that Microsoft was among those snubbed. This was seen as an alarming development for Microsoft’s popular Office productivity suite.

Google and CSC’s victory celebrations are long over and the June 30 deadline history, but so far only 10,000 city employees have been moved to Google apps while the rest, including 13,000 L.A.P.D members, are still stuck with a traditional email solution provided by Novell. The delay stems from the security concerns raised by the Los Angeles Police Department, which is particularly worried about data encryption.

"We've had a lot of technical issues, some we've created and some we haven't," said Los Angeles CTO Randi Levin. "We underestimated the amount of time it was going to take." According to a MarketWatch report, the two companies have agreed to compensate the city for all costs it incurs during the course of the delay.