Just had an interesting presentation and discussion about a new VLE just launched by Pearson. It's called OpenClass, and is free! It's totally cloud based and integrates seamlessly with Google apps. It looks very interesting. Easy to use interface, content looks easy to create and upload, and from the student perspective you can create communities, collaborations and share stuff very simply. You can get to your gmail from within it, see your google calendar, Skype students directly and chat. It's available on the Google market place, and in the 48 hours since launch has been downloaded by 500 schools and colleges already using Google apps.
It's attracting a lot of attention, and there's a lot of buzz about it here.