In Dec 2009, The City of Los Angeles announced of equipping 34,000 city employees with Google Apps. The deal was reported to be worth $7.2 million. But it hasn’t been a smooth transition from GroupWise to Google Apps; as the LA City Administrative Officer Miguel Santana raised question in an inter-departmental correspondence to the Chair of the Information Technology and Government Affairs Committee in mid-April, Santana wrote:
In February, selected staff from several City departments began to use the Google system on a pilot basis. Currently, 2,405 participants in 32 departments and nine elected officials' offices are in the pilot. On March 23, 2010, the working group invited all pilot participants to discuss their experiences with the Google system. At the meeting many of the departments expressed concerns about both the performance and the functionality of the new system. Performance concerns focused on the slowness with which e-mails were sent, received, and accessed in the new system. Functionality concerns focused on features currently available in GroupWise that are unavailable, or significantly different, in Google's system. Further, the Los Angeles Police Department indicated that several security issues have yet to be resolved, and that a pilot of its technical support staff must be successfully completed before it can be expanded to the rest of the LAPD. Some pilot participants also identified new capabilities that were not available to City staff using GroupWise, including collaboration tools, chat, and compatibility with a wider range of mobile devices.
More info: LA City Administrative Officer Miguel Santana Letter (pdf)