The big news with Google is that they have added to the GMail for Your Domain program by including Pages, Talk and Calendar to create “Google Apps for Your Domain“.
Now this has large chunks of the media in a fluster, predicting a war between Microsoft and Google over MS office vs Google Apps. This is a marvelous piece of media hype. It just ain’t so. Anil Dash has some good explanations in this post and a couple of others on his blog so I won’t repeat them here.
When they add spreadsheets and word processing, both of which they have as individual applications they will have a marvelous tool for a number of people, but it won’t usurp Office anywhere, with the possible exception of the small to medium business.