I think it only makes sense for colleges and universities to outsource generic services like email. They are really a utility that should be handled higher up the stack. Sure, there are concerns about having someone else be stewards of our data. But frankly, I think Google has a much better security infrastructure than we do around here. Hell, they even talk about "armed personnel":
Your proprietary data is protected by security measures that include biometric devices and armed personnel, special-purpose equipment and services that only expose the minimal required access points to serve their function, dispersed data in proprietary formats and redundant storage that ensures the availability of your data.
Don't think we can provide that around here at L&C...