Earlier quoted context omitted.
Federal Organizations
http://www.google.com/apps/intl/en/government/trust.html The GSA itself is a Google Apps customer. NOAA also made news this year by moving over its 25,000 users.
I am talking about the federal government that may handle sensitive information - not local government. Where important things are done they do not use Google Apps. They use Microsoft Exchange for email and .DOCX for word documents.