Google using Google Apps

I found the following YouTube video, where Eric Schmidt and Douglas Merrill talk about how they are using the same applications which are available to everyone else in the world internally to store all their documents, handle collaboration and use it for all internal running of the company.

Could this be something that could grow bigger and maybe into other enterprises and companies ?

I see it as it is all right that they use it for themselves, as they are in control of the servers and data, but for a 3rd party company I still see the risk of an external company being in control of your data. What do you reckon ? Will Google Apps be feasible for large corporates out there ? It could work for small startups though …

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