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Google Apps: Too cheap to ignore?

Microsoft has a serious problem on their hands: Google may be too cheap for big companies to ignore.

I've had a few conversations with IT executives from Fortune 500 companies in the past several weeks, and I've been surprised by how often a new enterprise-software company kept getting mentioned. The company?

Google.

Google has the problem of putting finish on a lot of its products, leaving things in eternal beta, but the price point for Google Apps is forcing even the biggest of companies to seriously consider Google instead of a Microsoft Office 2007 upgrade. (Google Apps: It's not just small customers anymore.)

We may be getting to the point where Google's "cloud" allows them to provision users so much cheaper than any given enterprise can that it will become the provider of choice.

In the case of one large company, it suggested that it costs them $200/user/year to provision their users with the kind of functionality that Google can provide for $50/user/year. They just can't "compete" with that.

So they're considering Google Apps. Tie goes to the company with the most scale? And isn't it odd that Microsoft is no longer necessarily the vendor providing that scale?