I simply can't see the value in hosted "desktop" applications. Re: Microsoft, IBM feel heat from Google Apps. Response time and accessibility are all bandwidth throttled, and we've seen what happens to customers when Google's servers aren't accessible. Give me native windows apps over web apps every time, and add Web services functionality - but don't make the app completely reliant on their being available. Imaging being the bonehead on the airplane that can't read e-mail or update a proposal until he/she lands and gets connected to the internet...