One area where Microsoft has a clear advantage over Google is in their business services. While they might have trouble facing off against Google Apps, they are getting a leg up over "online productivity" with some recent additions to Office Live that caters to small business owners. Their Office Live Small Business package is now going to be teamed up with The Search Agency Inc, a marketing firm intended to help business, of all things, advertise. The intent seems to be to provide a bit of integration for small businesses that want to increase their online presence, particularly through "search engine marketing" and "search engine optimization".
Microsoft's angle of course is to encourage adoption of Office Live SB, the side of Office Live that does handholding with business customers to do things such as launch sites. Obviously, they'll try to work in other "online productivity" into this. Coupled with their plan to introduce more web-based software in the near future, via Office Live Workspaces which they introduced this week
, Google might be facing some serious competition here.
You can read the full press release
at Microsoft's site.