I really wanted to go with Google Docs. We did a side by side comparison of the 2 (actually it was BPOS back then, not 365). My users simply could not get past using the Web Interface for email. That was without a doubt the biggest hold up. Personally, I prefered it, found it easier to process my work.
We tried using Google Sync so that they could stay in outlook and there were several issues there. I went to the Google forums and it was clear from admins that had gone the route of Google Sync that it was going to be problematic.
So unfortunately, we went with BPOS and that later became 365.
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