Google seems to be quietly and quickly escalating the amount of storage it gives GMail users. Only a few weeks ago, my account offered roughly 2.7GB of storage, now its up to 4.3GB. With the addition of IMAP support, GMail is definitely an option for small businesses that need e-mail and don't want to deal with an ISP.
Heck, I could use it for all my Network World mail. My mailbox here is only 82 MB.