Speak to me about Office365 and Google Apps

[DoubleCheese]

For a small business with <10 staff which is the better solution for Email and sharing/collaborating?

We currently already have MS Office 2010 Business on all our desktops and our Exchange email is currently on a SBS2003 server in the office, but its old and playing up, so we are considering putting our email in the "Cloud".

We share a files within the office and will have a low power PC for serving some Applications and files to the desktops and for backing them up too.

Considering we already have MS Office 2010 Business, is Office365 better suited or would Google Apps be a similar or better solution?

 

[DoubleCheese]

TSOHost can't compete with Office365 or Google Apps for Business cost wise, neither can a few other hosts that I've looked at actually.

I'm tempted by Google Apps for Business due to the lower and simpler pricing structure.