I am ridiculously pleased with Google Apps for your Domain as infrastructure for a small, start-up company. And, with the recent addition of IMAP support for Gmail, I can now keep multiple devices in sync (which was a BIG problem w/no Exchange Server).

Now, for free, I can delete an email on my phone and it syncs to my laptop, my desktop, and the gmail.com interface. Sweet!

Unfortunately, I am not ready to pronounce Google Docs as a standard over Microsoft Word. It has the functionality, no question, but I feel like it is still a version or two away, since there are just a few quirks in terms of formatting/usability that make basic stuff a bit too frustrating for this stage of the revolution.

I do love the ability to share/collaborate with others and immediately publish to web, but you need to be able to write the doc with no hassle before all of that.

It’ll get there, no question, and it’s close, but not yet for me.

I am proud of my almost 6 year career at Microsoft. The company has some great products that, when put together offer a great solution. (They do have some challenges telling the story though, see: Microsoft's "Cool Hand Luke Problem" and CRM story.)

There is a threat looming however.

Now that I am sole proprietor, I don't have the massive MSFT infrastructure behind me (nor its resources), but I still need the functionality.

As a start-up, cash is king.

Here's how I set up my "corporate infrastructure" for under $100 (plus about 10 hours of my time ).

Phone

• I use GrandCentral which gives me one phone number that can simultaneously ring my cell phone, my SkypeIn number, and my new home office line (MagicJack). I don't have to say "oh, call me on my cell." I give out that number and wherever I am, I pick it up.
• A word about MagicJack. This is a great device (though it shouldn't be used on your primary computer b/c of packet loss.) For $40, yes you read that right. And no, not per month, you plug in a phone (I bought two handsets at Costco for $39) and you've got a VOIP line.

Infrastructure

• Bought the www.jer979.com domain at www.1cheapdomains.com for $8.95/year
• Paid $40/year for hosting of Graffiti CMS (awesome blogging/ web platform) at www.appliedi.net (great customer service)
  [BTW, Graffiti for-profit use software costs $400, but you could use a regular blogging engine w/a bit less functionality for free)
• Set up Google Apps for your domain for free. This gave me
• corp email
• a web-based calendar which I can synch w/Outlook and share out
• a GoogleDocs workspace to share w/clients and partners
• GoogleSites so I can collaborate with extended team members on a by-project basis
• a customized home page

So, the threat for Microsoft is: why would I but Small Business Server for $600 plus hardware plus services to configure?

And here's the bigger threat...as my company grows (hopefully) Google is providing a migration path (both in terms of storage, etc.), but also with integration/partnership with SalesForce.com for opportunity management.

My bet: they come out with additional "hooks" such as Quicken, etc. that small business owners need.

It's the "Long Tail" approach. They can cost-effectively service a population of 1 (me) and let me move up at my own pace.

What's most remarkable is how 10 years ago, for me to get all of this functionality, it would have been $30k worth of software/custom development. Now, it's a matter of hours.

Ok, so maybe a bit more than $100, but not by much....

Facebook is really kicking it into high-gear. First, they launched the "lists" feature allowing you to segment your contacts by areas of interest.

Now, they have Facebook chat available (see lower right of screen shot). They are really looking to move to the point where, from a communications perspective, logging on to facebook is all you need. That's a pretty intense shot across Google's bow.

I've got a Gmail account, but don't "GChat" though I'm told there are many who do and I will still IM with different folks across different platforms (I like meebo for this) when I have a chance, but what FB has done is removed the need for "one more place" and that's pretty powerful.

What's more, they continue to solve one of the biggest problems in contact management....the contact info of the person I am seeking.

I don't need to know your current info. In fact, I don't even care. We're connected and the onus is on you to keep the contact info up to date (which you will, since you want your friends to find you).

Love seeing the platform/communications wars heat up.

It's been a few years since I read Sun Tzu's the Art of War, but Google's announcement yesterday of an App Engine that scales using Google Infrastructure is nothing less than a full frontal assault at Microsoft's server business.

The attack on the desktop business is well underway with Google Docs, but this moves go at MS' bread and butter in terms of the corporate market.

A somewhat technical (9 min) video is below.

Now, the gloves are off....it's going to be fun to see how Ballmer and Co respond.