Google Docs is quite a formidable tool.
Feel free to download the report I wrote about it - Google Docs Report
Alternatively you can find the Report on the Simply Click VLE - in the RCT Portal under the resources folder C.E.L.T. Resources and Software Guides
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Actually what you really want is Google Apps for Education.
This enables you as an administrator to set access to the various apps (like chat, docs, calendaring, email etc) as well as permissions and mini web-sites. Each user gets 6Gb of space. There's even an email forwading service to help roll it out across the enterprise.
It's free too and also ad-free and you can set up your own url's e.g. ebost.llanhari.com. You can also put your own logo on the pages instead of Google's and add your own apps (they give you an app EDI if you're really keen!).
We've been piloting it for 2 months and are rolling it in September as a fuly fledged Intranet system i.e. email, school-wide calendaring, mini webs, docs and start page. If you want to talk about the benefits and pitfalls in more detail email me at a.parker@llanhari.com.
I'd be interested in seeing how the school gets on with Google Apps, Zug. Many of the functions you mention are key requirements for the proposed LEA wide learning platform and your response really reinforces my premise that a single, off-the-shelf solution isn't the way to go;-) We're also using Google Apps here at the uni.
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