Here is an interesting article about OfficeLive (and Google Apps) by Barb Darrow at CRN titled 'Hosting Providers Cast Wary Eye at Microsoft OfficeLive.  Talks about how OfficeLive has created a stir in the Hosting Provider and Broadband Provider community as they try and figure out what 'their' strategy is.  More in general ...

Having played around with the OfficeLive Premium Beta (UK) for a few days, my first impressions are very favourable. It certainly seems to tick all the SaaS 'must have' boxes identified in various posts on this site and seems very compelling from a micro/small business perspective. I am pleasantly surprised at the level of sophistication ...