Computer Science 101: A Case Study In Google Applications [the broken link was removed]:
The cost to ASU: zero. The university had been spending a half-million dollars a year on servers and storage for its open source e-mail system, including administrative support costs. More important is the faster pace of innovation. “Now we’re on Google’s development curve, not ours,” Sannier says.
Google’s efforts with Google Apps have fairly quietly become quite significant. I find gmail excellent (and Google talk and Google calendar are good but hopefully will be improved significantly). I must say I find Open Office very good and so don’t quite see the value in Google docs but maybe I am missing something (for those few documents that benefit from collaboration Google’s model sounds interesting – though a wiki seem like the best option in that case). Seems very possible Google Apps are an example of Clayton Christensen’s concept of disruptive innovation.