This seems very ridiculous. Google hosting government services, especially at the typically non-confidential city/state level, is <i>less of an issue</i> than hosting services for private companies. Almost everything those governments do is supposed to be open to the public. There is nothing (or at the most, very little) to compromise.<p>Any organization, public or private, should be backing up their Google-provided services on their own.
It's worth keeping in mind that when Google proudly proclaims, "hey, so and so many people have gone Google," they've chosen their definition very carefully:<p>"The reference to Going Google refers to US state governments using <i>one or more</i> of Google’s enterprise products..."<p>Let's not forget that Google's enterprise products include their search appliances, Google Earth (to some extent), etc. This isn't by any means saying that upwards of 50 percent of state governments are using Google Docs.
Good data in the post on Google (people are definitely more wary of them now that they announce more and more projects in more and more areas of internet architecture), but small fries compared to the military contractor complex's influence on the federal government, in northern Virginia and Maryland...