Google Apps - Is it gon' fly?
GMail & GCalendar - MS Exchange Server & Outlook
Gets rid of at least 1 server in your organization. Cuts down on maintenance cost and licensing fees. I've tried to use Outlook once and I hated it and never wanted to touch it again. This is the easiest part of the Apps suite for the users to adopt and imo, the best sell point for companies considering Apps.
Of course there is some issues of trust in letting someone else store your proprietary stuff. Sometimes, "do no evil" will just not be enough... Wonder if Google will put GMail into a Google Mini and call it GMailBox?
Docs & Spreadsheets - Word and Excel
D&S doesn't have nearly as much functionality as Office does. But for simple memos and TPS reports (including cover sheets), it will do. People are making a big deal about this one since Office is pretty much the standard software to have on a Windows machine(minus Open Office.)
Page Creator > Front Page
Front Page is just terrible. Notice how every college professor will want to have their own web page on their schools' domain? It is often inconsistent to the design of the main site. Using Page Creator, this can be controlled!
Start Page
Makes everything web based is the biggest leap users will have to take. Not everyone has adopted the web 2.0 mindset. It won't be easy to make the 48 year old woman working in sales effectively working with web-based software. It's gonna be like teaching a white guy to dance.
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