• MarketWatch.com, Friday, July 23, 2010 1:46 PM

Remember that contract Google won nearly a year ago to supply "cloud-based" email and collaboration software to the City of Los Angeles? Right, well the search giant appears to have missed its June deadline for full implementation of the project. The reason? "Lingering security concerns," reports MarketWatch.com.

"The delay is a setback for one of Google's most strategic businesses, and an illustration of troubles that large organizations can encounter as they shift to a so-called 'cloud computing' model, in which data and applications are stored and accessed online," it writes. More embarrassing still, Google beat out archrival Microsoft for the high-profile contract. "Google's failure to have all municipal employees outfitted with Google Apps by the June 30 deadline will have the company and its implementation partner reimbursing LA for extra costs, as the city continues to rely on former supplier Novell Inc according to Los Angeles Chief Technology Officer Randi Levin." City Council members were reportedly informed earlier this month that LA could incur up to $415,000 in costs over the full fiscal year, thanks to the delay.

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