Google won the battle with Microsoft for the right to move Los Angeles’ 30,000 municipal employees to its e-mail system, knocking out Novell’s GroupWise platform for the $7.25 million contract. However, the contract comes with a caveat. Google must compensate the
city if its e-mail service is breached and data is stolen. The Los
Angeles Council voted to add the penalty provision 9-3. Consumer
advocates applauded this motion. "Los Angeles residents cannot be sure the city’s confidential or
sensitive data will be secure," said John M. Simpson, consumer advocate
with Consumer Watchdog, "but at least they know there will be a penalty
if security is compromised. It’s essential that this project be closely
watched to ensure that Google keeps its promises."