As someone who works with several non-profits as they make their decisions about technology, I’ve noticed that Microsoft Office is often overkill for the actual needs of said non-profits. This is probably also true of small businesses as well. I’m not sure that we’ll see massive use of Google apps among non-profits in part because most non-profits can get XP and Office practically for free through Techsoup and similar programs.
With regards to small business, who knows? Open Office (though cool) isn’t as familiar to people as MS Office and is just as complex. Goople apps might work pretty well for small business in that sense.
It would be funny at any rate. With all the talk of Linux/Open Source replacing Microsoft products (and the fact that it’s not happening very quickly), it would be funny if it happened indirectly with Google as the mediator.
It certainly seems more likely to happen that way than it is that my parents will install Ubuntu.