I just don't think Google Docs / Apps is really ready for the 'enterprise' world what so ever. As you said, the price just isn't there yet, and the functionality is not either. What's worse is, not being able to control the updates. The one thing that makes Microsoft's products so wonderful for Administrators is that we can control the updates and how/when they get deployed. Obviously, with Google, you're at their mercy and clearly they don't care too much about us when they go and make updates that changes or breaks our current functionality, which is absolutely unacceptable in an enterprise environment.

On the part of the consumer, I think MS Office and Google Docs could easily coexist. Google Docs is free and Windows machines come pre-installed with a lighter version of Office. No problem in having both. I think the enterprise is the bigger question, since this is largely a strategic decision, and it's the one that'll really rake in money for both parties.

Google, in my opinion, has a double-edged sword in the form of Google Apps. On one hand, Google Apps-run enterprises are quite likely to use Docs. On the other hand, I doubt that an enterprise that doesn't use Google Apps will adopt Docs at all. Google Apps licenses are far too expensive if people are only going to use Google Drive.

Given that, I think the enterprise world can easily be divided into the Google Apps enterprises and those that aren't, at least in terms of office suites. Those that use Google Apps will either use Docs entirely or share the pie with Microsoft Office. Those that don't use it will likely not see the use of Google Docs at the level of the enterprise.

Brian - Google Docs has an offline version. Not all features are available offline, but Google continues work on making them available one by one. The mobile apps are great, too. You could download "files" and sync on mobile as well. I don't think offline mode will be a question in a year's time.

For me, the main difference between a web app and a native app will still be speed; native apps can make better use of a computer's resources whereas browser-based apps can just drive browsers to crash.

Kim - For simple tasks, the current version of Google's spreadsheet app does very well. It can even be more user-friendly than Excel because it cuts out a lot of high-end features that many users don't need. That said, if we're talking about the enterprise, those high-end features start to matter. If you've tried doing Pivot Tables in both programs, you'd know how hard it is to do in Google Docs. I don't think AJAX will ever match the speed of desktop software. Let's not even talk about how well Excel could integrate into Microsoft's ERP systems. Macros, complex functions, etc... the enterprise's financial arm has totally geeked out on Excel and will have a tough time switching.

I love the power of Excel and the convenience of Google Docs. I use both, the former for serious spreadsheet tasks, and the latter for simpler, everyday tasks. I spend more time on Google Docs but more serious time with Excel.

I have yet to try Google Docs and I have been a Microsoft Office user for numerous years.  Is the transition to Google Docs pretty seamless?  I am all about trying new applications if the application makes my job easier.  However, if I can get the same effect with using Office, it may take a while for me to jump on the bandwagon to switch over to Google Docs.

Google's web-based spreadsheet is functional, but it isn't anyway near as capable as Excel for macros and other complex functions.

Plus, over a span of a few months, when I was trying to use some "slightly" advanced spreadsheet functions on Google Docs, Google changed how the functions worked, so I had to re-write all my formulas to match their new syntax. That was a real pain, and the only way I found out about it... was by reading google "help" forums -- which aren't even staffed by dedicated Google employees most of the time. So... free online web apps are nice, but they're not quite as nice as they could be.

Imagine if your MSFT Excel file that had a bunch of linked formulas just stopped working the way it used to... at least packaged software the runs locally won't unexpectedly change and break your previous work. 

I've been forced to use a Google Docs spreadsheet for a collaborative task, and I'm finding it about as user friendly as Excel.  I admit, I'm not doing anything fancy with it.

I agree, mhhfive. Excel is a staple of Microsoft and one that is not going to be easily surpassed. At least, not anytime soon. There are alternatives to Excel out there, but none that I've tried thus far can compared to the power that Excel holds within. People sometimes take for granted just how in depth Excel can go; it's not just a spreadsheet application. We have people here who use it to build elaborate calculating tools and even use it as a staging place to then convert over to a PDF. I myself am not very well versed in Excel, which is a shame, but it's not an application I'd venture to guess, would be outdone anytime soon.