Companies need to outsource functions that companies are not an expert at. And, some would say, what Google does best is search and they should not get diverted by what other companies do best.

Only time will tell.

Jeffrey Falk, director of product development at The Members Group says his company, which has about 150 people and revenues in the $50 million range, would consider Google Apps as a replacement for Microsoft Office mostly for the cost savings. But, he added it would have to meet a number of stringent requirements first.

"If we could find an ironclad solution that would deliver a quick time to market as far as the learning curve for us and we could overcome the hurdles of security and become comfortable with that, Google Apps has some legs," Falk said.