Dan Jones writes "The Los Angeles City Council has approved a US$7.25 million, five-year deal with Google in which the city will adopt Gmail and other Google Apps. Interestingly, just over $1.5 million for the project will come from the payout of a 2006 class action lawsuit between the City and Microsoft (Microsoft paid $70 million three years ago to settle the suit by six California counties and cities who alleged that Microsoft used its monopoly position to overcharge for software). The city will migrate from Novell GroupWise e-mail servers. For security, Google will provide a new separate data environment called 'GovCloud' to store both applications and data in a completely segregated environment that will only be used by public agencies. This GovCloud would be encrypted and 'physically and logically segregated' from Google's standard applications. Has cloud computing stepped up to prime time?"