Google just released more details on the deal with the City of Los Angeles - in the case study they talk about the typical Google Apps benefits - improved collaboration, easier access to data from any internet connection, expanded storage capabilities (huge issue for outdated company servers).

What was more interesting in the case study were the additional benefits not usually mentioned in most case studies:

* security - high level of security and sharing integrated throughout the Apps products

* re-assignment of IT resources - ability to move resources currently being used on e-mail into more productive areas of IT development

* re-assignment or shutdown of servers - the case study says they'll save $750,000 on electricity costs over a five year period for 100 servers - I think that's a bit of a stretch - let's take 750k and divide by 5 - that's $150k per year - divide that by 100 servers and that $1,500 per server - for electricity costs?  I doubt it.  I think something got lost in the translation - I bet that's what they were paying for as a Total Cost of Ownership (TCO) - most likely they were hosted servers including rent, electricity, maintenance, etc.  But, nevertheless, it is a good point - moving to Google Apps reduces or eliminates your need for expensive servers

Here's a nice two minute video testimonial regading:

More information is available on CSC's website - CSC was the consulting group responsible for the initial Google bid to the City of Los Angeles.