Google's Strategy in the Enterprise - 'Google Sites' [based on JotSpot] is G's version of 'Sharepoint' for small and mid-sized businesses.
As an online suite of applications, email, calendaring, IM, and even security and compliance with Postini's help, Google Apps is off to a good start as being a suite that really has it together. For the small to medium size business, you could say that Google makes a strong offering as a more affordable alternative to Microsoft Servers and applications.