Microsoft just announced its answer to Google Apps, Microsoft Office 365.
Microsoft Office 365, the company’s next generation in cloud productivity that brings together Microsoft Office, SharePoint Online, Exchange Online and Lync Online in an always-up-to-date cloud service.
Google has gained a lot of traction with small businesses and educational institutions with Google Apps. But it appears that Microsoft's packaging and pricing was designed to directly challenge Google's assault on this market.
Microsoft Office 365 (e-mail only) $24 / user account / year
Microsoft Office 365 Small Business $72 / user account / year
Microsoft Office 365 Enterprise $288 / user account / year
Google Apps Standard Free ( 50 user limit)
Google Apps Premier $50 / user account / year
How should Google respond to the introduction of this new suite?