Microsoft suggests that Google Apps is not an enterprise-class service because it's incomplete, has simple tools that lack basic features like copy & paste, Google Docs is not fully compatible with Microsoft Office, while Google Apps is an "one-size-fits-all cloud service".
"Google Apps provides oversimplified applications that limit how productive your people can be. In fact, Google's own executives admit they don't believe their tools can replace Microsoft Office. That means your business may require extra tools just to complete your IT portfolio. Google Apps also has an unfamiliar and inconsistent user experience. Features are sometimes released unannounced and some aren’t even supported, which can increase support calls and risk for your business. Also, Google Apps is delivered exclusively online, so users need to be connected to the internet to get the most out of their tools," says Microsoft.
Microsoft's conclusion is that "Google Apps offer an attractive initial license cost, but it can increase operational costs in other ways. For example, you may have to deploy additional technologies to integrate Google into your organization, which raises costs."
Google has its own site that compares Google Apps with Microsoft Exchange. Google's main selling points are that Google Apps costs less than Microsoft Exchange, it doesn't require maintenance and it offers an excellent email solution. "Google Apps bring speed, flexibility, anytime, anywhere access and ease of use to employees – along with the cost savings based on Google's economies of scale and leadership in cloud computing."
Google Apps is far from perfect and Google Docs is certainly not a Microsoft Office replacement, but Google Apps is constantly improving and has many business-oriented features. To see how fast Google improves its products, watch Microsoft's videos and find the limitations that have already been addressed by Google: remote wipe for mobile devices, scheduling calendar resources, better copy/paste experience in Google Docs.
Microsoft's recent initiatives validate Google's online services: Microsoft Office Live and online Exchange compete with Google Apps:
"Cloud services from Microsoft make it easier for you to respond to shifting business needs, while we take care of a lot of the IT management burdens that can suck up your time—and your money. You don't have to worry about updates, service packs, or upgrades. We handle it for you, so you're running the most secure, up-to-date software."
{ via Blogoscoped Forum }