A fact noticed by Scott Sorley that Google already provides great infrastructure for Universities and Education Institutions.
GMail - a 1GB email storage system
Google Groups - discussion forums
Google Scholar - searching scholarly publications
Google Search - Internet Searching
Google Answers - answer any question you want
Blogger - internet publishing solution
Google News - up to date news headlines
So they can outsource and "focus on their core business - education, directed learning, specialise knowledge, research or whatever it is".