It's a deal with Northwestern University (Go Wildcats) to integrate its Blackboard Learn platform within Google Apps as a single sign-on. The Building Block itself is open source, Google Apps is based on open source, but here's the imprimatur of a major University (and big customer) linking a proprietary LMS into it.
Earlier this year Blackboard signed a deal with Flat World Knowledge, the open source textbook publisher we've written of here, to integrate Flat World textbooks with Blackboard Learn.
Given Blackboard's position as a market leader, and its open source Building Blocks for handling the integration, the move by Flat World is logical and justifiable.
The result, however, is that despite open source a proprietary LMS is more entrenched than ever within its marketplace.