For small IT businesses its a pretty good setup. They are missing some tools though and their Google Documents is not as superior as Adobe Acrobat writer or Microsoft Office Word which causes a major problem for marketing material.

Zoho.com offers some very unique tools that in some cases are far superior to Google's apps. The advantage of Google Apps is that their Email application and Google Talk is far superior then outlook in a lot of ways. We also uses Google Spreadsheets to gather leads by creating a Google Form that inserts to the Google Spreadsheets. This is much cheaper than using other SaaS CRM tools for a small business IT shop to manage a small limited amount of customers. The ending result is

They are getting there and with chrome if they could improve their overall applications and make them more robust they would definitely give microsoft office a run for their money.