Google is trying to make inroads into the small-biz world by introducing its web-based cheap solution set and of course going after the Microsoft customer base. Though MS doesn’t have to worry about the corporate users just yet, the mom-and-pop shops might start to get pursuaded. However, as i have said before, Privacy is Google’s Achilles heel and if there are privacy-related issues and incidents, outages, etc., their cause will suffer as a result of onslaught of media reports plus this is new territory for Google.
They do have an iron-grip on the online search market and they can bring some interesting technologies to bear that empowers the new-age worker and make life simple. If anybody can give MS run for their money, it is Google and they are experimenting their way through it.