While I agree in general, my point is that this market is an exception (at least in the US, I have no idea what the situation is like in other countries). Universities are dying for an alternative to Blackboard that has some reputable company behind it. If google had a suitable product they would have to work hard and hold hands to get the first couple of major universities to deploy (not even that if the product was deployable rather than google hosted). After that faculty at other universities would begin quietly demanding relief from the bane of their student's and their instructional lives now that there was a justifiable alternative.