Google Office
I’ve used Google Documents quite a bit, and it’s not bad - if it just supported footnoting, it would be awesome. I’ve used the spreadsheet program a couple of times, too, and it seems fine. If I were a company, though, I think I’d worry about having all my important documents on someone else’s servers.
I believe it is possible to use the google suite on your own servers, but the more interesting point I think is that for many companies, having all documents of someone else’s servers is probably both a whole lot cheaper and more secure. Sure, large companies can afford their own IT staff and infrastructure, and the control that comes with it, but many small and medium size companies can’t afford the premiums in equipment and talent that they would need to equal what google can provide.



OK, so I tried to leave a long comment last night and lost it somehow. Here’s the sort of executive summary of my thoughts.
While you’re undoubtedly right that the Google people are likely to be more technically competent and have better equipment for data security than a small business, there are some offsetting things that you may be missing. A small business that depends on securing its data (ie, one with internal memos that describe proprietary technology) not only needs to know that the people who work on said data are technically competent; it also needs to know that they’re both trustworthy and committed.
If you run a small busines with improtant secrets, it’s got to be scary to know that somewhere in Mountain View there’s a half dozen people you’ve never met who can sudo into your account and look at whatever they want. Furthermore, it’s got to be scary to know that your data is being handled by employees of a market giant that will suffer, at worst, some public embarassment from a data loss that will kill your company.
In other words, when it comes to making judgements about where best to secure your data, legitimate worries about malfeasance and/or apathy on the part of the Google people may be more than enough to offset their presumed higher technical competence. I’m sort of in this situation myself (although my “business” is a very strange one whose “customers” are scientific funding agencies) and would rather secure my sensitive data myself — even though I know that I’m less technically competent to do so than any number of outsiders might be.