For personal use Google is great.
For business, Google Apps isn't really even a direct competitor to 365 and their reps will tell you that. They are targeting the companies that don't need the full office suite and SharePoint, etc.
Most of my company's clients are on 365. I did do a Google Apps migration this month for a development firm and it was fun; Google really does have that cool factor.
The cloud price war is insane though. Every time you turn around someone is offering up more storage or driving the price lower.