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You know the cloud computing model has hit it big when the second-largest city in the United States makes the switch. Los Angeles had previously been running Novell’s Groupwise (ouch!) and one can imagine that with the economic downturn drastic cost-cutting measures had to be made. This year they made the move to use Gmail for 30,000 city employees along with Google Docs. So instead of wasting IT resources to maintain an email server, they can now deploy those resources to initiatives that provide more value for the city.
The case for cloud computing was so clear that the LA City Council voted unanimously. Microsoft sent their big guns in to try and derail the Google move, but to no avail. Cloud computing has arrived in major fashion, and it’s become quite clear that vendors must either compete in that arena or they are in trouble.