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In Canada it is illegal to store student information on servers outside of Canada. At least that is what I was told when I was asked to create a CMS.

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There is at least one Canadian school amongst the 8 millions students using Google Apps as their official suite.

http://www.google.com/a/help/intl/en/edu/case_studies/lakehe...

I'm betting that Google or a 3rd party will eventually piggy back a for-pay educational tool on the existing Google Apps school customer-base through their Marketplace.

That just seems like a business opportunity - dealing with regulatory hurdles.

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