To be very clear about this: I have argued from the start that most small to medium sized businesses would be better off outsourcing typically generic services like email because outsource companies enjoy systematic advantages (scale, specialization, expertise, etc). I was also specifically challenging your apparently sweeping arguments that they should be categorically rejected " simply because of liability and privacy" or because they are "not tightly bound by laws regarding retention and usage". You may have intended this to refer only to Google Mail/Apps specifically, but I think it was fair to interpret them as a broader attack on outsourcing IT services generally. Regardless, that is the point I took issue with.
however, all of this is academic and is entirely dependent upon process, policy,hardware, and software. It's like stating that it's less risky to let someone else drive than it is to drive your own car. In some cases yes, in my case, I would argue no, it all depends on the details - and again, I wasn't making generalizations, I was stating my opinion about why I don't use it and the opinion of those in similar positions to myself whose opinion I am aware of.
I agree there can be unique circumstances that make outsourcing a poor choice, but I think you overstate your case. A typical outsourced email operation enjoys substantial structural advantages that an in-house operation rarely has given more standard requirements. A better analogy would be asking whether you're better off flying in a single-engine plane with a private weekend pilot or flying commercial airlines in the US on a wide-body jet. OK, that's perhaps an overstatement with respect to comparative risks, but nevertheless....
But why would a 50 person company need 24-7 support for office applications and e-mail?
Some medical devices business, for instance, require this kind of support (my last company) since they are supporting patients in a clinical capacity nationwide 24-7. Likewise, some of my current clients require support at 10PM or later since they're sending multi-million dollar proposals at the last minute (a lot of money at stake). In any event, my point is that a 24-7 operation has an easier time doing maintenance (since they can schedule it after hours easily) and are more likely to be able to attack a problem as soon as it is detected (which may well be earlier too since their operations are often more professional/proactive). Perhaps you can have your admins stay till 5AM to fix a problem or do a routine upgrade, but they're probably going to make more mistakes because they're tired and will be of little use the following morning when/if something blows the following morning.
I'm sorry but we're an ISV and we have some pretty sharp people here, but none of our 'non techies' would easily be able to fill the role of a squashed Google Apps admin or manage mail difficulties, or be able to convey those issues intelligently to whatever support mechanism Google has in place.
I bet they can handle most of the routine stuff (e.g., add/drop/change accounts) long enough to comfortably locate a replacement (which, btw, probably is NOT a full-time IT person)-- certainly far better than they are to be able to re-build a RAID array or deal with a complex AD replication issue.
What downtime? Are you envisioning some scenario where there's a private company with an understaffed, overworked IT group and someone burns down a file server someplace right before a big sales presentation? While certainly what I would term 'uncommon' it is a very possible scenario; however, it is simple to argue that a small company could at least remedy the situation themselves whereas Google losing your mail (as has happened), or Google Apps not being reachable (happened several times that I'm aware of for long periods of time) is something you can do absolutely nothing about. That's ignoring the obvious problems with "Hey Bob, where's that spreadsheet you had ready for the board meeting today?" "Uh, well, I can't show it from my laptop because when I went to synch it this morning, we were having ISP difficulties, so I couldn't get it off the cloud..." In all instances I can think of, the worst case scenarios are all better on the 'no Google Apps' side of the river.
(Again, I do NOT think Google Docs is a replacement for MS Office generally speaking). Where I think you go wrong is in confusing the availability of Google Mail, practically the lowest possible cost option for an actual company, with the significantly higher cost hosted Exchange options using more stable software and established technology. I would challenge you to try to offer a better emails/contacts/calendar experience for all of your 50 users for a mere $2500 a year (including server acquisition, IT overhead, data center, bandwidth, licensing, etc) which is what Google is charging. I bet you spend at least twice this much in IT manpower alone to deal with backup/maintenance/issues/extra time necessary to handle it as-is (without more exotic/expensive systems to ensure higher levels of availability)
Why? Adding 50 people to your staff is much more a problem relating to hardware, imaging, OS infrastructure than it is to e-mail, file server space, or office productivity software. Adding 50 people to your staff and giving them an approach to office collaboration they've likely never used, seen, or heard of, would be a much bigger problem. Again, I can imagine scenarios where what you're saying is absolutely correct, but I certainly don't think it applies in the general case and certainly not in my case(s)
(Again, not talking about Google Docs!) Consider the costs to step-up server, licensing, IT staff, data center size, bandwidth, etc as you grow or add services. If you buy a server hoping it will last for 2 years as rapidly growing company, you will probably be forced to buy a lot more capacity than you really need if you think you will reach, say, 100 users in the next year and/or as mailbox sizes expand (if you allow this). What about your data center when your company needs to move to a new office space? It's kind of hard to hire 0.2 sysadmins. Ok, maybe you can find a decent part-timer where you are but you lose something in the process (imho). These are just a few examples of stepping issues.
I don't understand why using Google Apps or Google Mail would keep a company, who needed data centers to accomplish their goals, from needing data centers anyhow? Are you saying that these data centers exist simply to support something like Microsoft Office and Exchange?
Actually for this $60M (250+ FTE and rapidly growing) client of mine I've kept them out of a needing to invest in a data center entirely with judicious use of outsource services and I am running their entire IT operation with around 5-10 hours a week from my company (a bit pricey on an hourly basis, but they get a lot more value too). I don't need to be on-site to deal with any critical servers. With the servers that I do directly manage at Rackspace, I can be confident that if a hard-drive or power supply fails, it will be replaced in less than an hour--even if it happens at 2AM and I'm under some bus tire :-). This frees me up to focus on the tasks that really offer value and means that I can bring on a relatively junior full-time IT guy to manage the day-to-day issues when I go off-premises in a few months, after I've delivered a major piece of software, and that it will be more than enough even with increased demand. Likewise, I know when this client outgrows their current suite in 10-12 months I will be able to manage the move painlessly and with minimal investment of time.
I think it would be very simple to argue the exact opposite. Google is quite obviously a giant, virtually irresistible target to hackers. Given the hacking of their e-mail systems most recently, I would think this would actually be an argument against using Google mail for things you want to be private. The more and more people who use Google Apps, the more likely Google Apps will be penetrated (I know, that's obvious.)
My point here was that if you are a tenant in some kind of shared facility and you're a relatively obscure 50 person company in a relatively unsexy area, your data is not going to be of much interest to most would-be hackers or snooping employees. Google itself is obviously a huge name target for hackers (on the other hand, Exchange as an application is at least as large of a target, with highly exposed code (albeit in machine code), and it's difficult for Microsoft/Customers to test and deploy patches across the many different configurations and millions of installations.
Having also been acquired by large companies (both Microsoft and then at another company by SIEMENS) and 'integrated' (love that term which should be worded 'ugh, you change now, do things same way we do'),
Agreed :-) The acquirer of my last company sent in a "SWAT" team from IBM, directed by their usual middling mid-level yes-man people, (they treat them like dirt) and some other consultants to do the remaining integration that I resisted after I gave notice (they didn't understand wtf they were talking about) and it was epic fail by all accounts. Sigh. They're still trying to shoehorn their ERP system, several years later, at the cost of several million in customization (and that's just the estimate!) and it's going to massive clusterf*ck if they pull the trigger. I am half tempted to just deliver a clean functional (fully buzzword compliant) re-write and offer to sell it to them for half the cost (a mere $2M), but they'd never go for it if it doesn't come from SAP or one of their other established business partners. Then again, I think I'd probably commit seppuku if I had to deal with their C-level operating company people again (or, worse, wanna-bes) for any extended period of time.