Any idea of how this will sit with government organizations and colleges/universities?

I believe in Canada most (if not all) provinces and even post secondary institutions have data policies that don't allow most cloud services since they can't guarantee data isn't being stored or processed in a data center outside it's borders.

There are some exceptions for the use of OneDrive, but we are prohibited from storing any sensitive data there. Other cloud based apps are hosted on a proprietary instance, but I'm not sure if this option will be available in this case.