WSJ.com - Google Bundles Package of Tools For Business, Education Markets

Maybe this will appeal to some educational institutions, but small- to medium-sized businesses? 

Perhaps this will lead Microsoft to accelerate schedule plans for Office Live.  

Google Apps for Your Domain is designed to allow organizations to provide email and other services to their employees, students or members without the hassle of having to manage the software or hardware the services run on. It follows Google's February release of a similar offering for organizations called Gmail for Your Domain, focused solely on Web email.

Google's move puts it in further competition with Microsoft, which caters to organizations of all sizes with sales of its Outlook and Exchange email, address book and calendar software -- programs that are installed on its customers' computers. Microsoft is also testing an Internet service targeted at small businesses called Office Live, which includes email, Web page hosting and group calendar services.

Source: WSJ.com - Google Bundles Package of Tools For Business, Education Markets