Microsoft has a deal with Comcast and Cox to offer small businesses Hosted Exchnage and Sharepoint. Now Cbeyond has struck a deal for Hosted Microsoft Exchnage as well. Now, either Microsoft is telling these providers that Hosted Exchange is huge or they have realized it themselves. Either way, as I have cited before, email is the killer app and if you are not offering best-of-breed and reliable email service, you may lose out to someone who is.
BTW, everyone.net has launched a new AJAX webmail client. You can Outsource your Hosted Exchange servcie to lots of other people including GroupSpark and Intermedia.Net - both ISPCON perennials. But at least offer it.
TechDirt is pointing out that the Palm Centro is the start of the inexpensive smartphone ($99). By the end of the year, everyone who wants a smartphone will be able to buy one for around $100. That means lots of folks who will need Blackberry, Goodmail, and Exchange services - hosted to avoid the Sync issues.