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I've blogged the opposite opinion, and I still hold it. I'm curious to expand the discussion with Ameed and Justin in person. I will be sure to blog or tweet you the results.
We learned a lesson years back when the concept of a hosted business intelligence apps/DWs emerged (remember "ASPs"?): Enterprises simply do not want to outsource management of business-critical data.
Can Google potentially kill MSFT's Office business someday (OpenOffice hasn't yet)? Sure. But that's not "enterprise computing" IMO.
I don't think (and didn't say) Google would kill MSFT. They're very smart to pitch themselves as complimentary and not competitive with the Office business. MSFT recognizes the threat though, and so should all enterprise software companies.
I concede your point that some businesses will never go into the cloud. For them, Google can go with on-premise appliances like the Mini and GSA.