Barb Darrow from CRN wrote an interesting article this week (http://www.crn.com/software/197800215?pgno=1) outlining how hosting providers and channels are keeping "A Weary Eye at Microsoft Live".

It is a really interesting article especially since it outlines the fact that hosting partners were previously spoon-fed Microsoft Services offering only to have Microsoft turn the table on them:

"Many of these hosting partners had been recruited by Microsoft to offer SharePoint- and Exchange Server-based offerings. But now that Microsoft is hosting its own low-cost collaboration, Web page creation and e-mail service, what are they supposed to do? "

If you read the article you will also find out how my company, SMBLive, is delivering the same or comparable suite of Web 2.0 Business Collaboration software by partnering with incumbent broadband service providers such as BT, TELUS and CyberTrails.

It will be interesting to see how this "battle of the giants" plays out, and if the SMB markets have anything to benefit from it. One thing is for sure though, broadband service providers are in the lead. With their existing large SMB customer base, all they have to do is provide VAS by creating and providing additional SaaS offerings.