I came across these videos by the Microsoft team promoting their Office suite vs. Google Apps. They compare the desktop version of Office with the web-only Google Docs (we'll have to wait and see what the web-version of Office will be like). They make the expected points that Google Docs has limited options and that formatting is lost when converted to Office documents. Interesting enough, Microsoft shows the limited copy and paste option in Google Docs , this has already been updated and vastly improved by the Docs team. Another interesting point, these pro-Microsoft-anti-Google videos are hosted on Google's service, YouTube.
I think that Microsoft is really worried about the Google Apps suite and they should be; there are currently 2 million businesses worldwide that have gone Google along with 7 million students, faculty, and staff. Most of my work is done in the cloud (like this blog posting) and although the formatting is limited compared with desktop applications, the advantages of collaboration, access from anywhere, and ease of publishing to the web are very strong. I love the cloud!!
Uncool Microsoft Videos
Cool Google Apps Video