In the office productivity tools space, there is a gap between cloud based solutions(google apps, zoho etc.) and desktop solutions. How much ubiquitous is cloud, it can't replace the ease of use, control and data security of desktop solutions. certainly the terms "ease of use", "control" and "data security" can be interpreted in more than one way for cloud based apps and desktop apps. zoho with the latest initiative filled this gap only. It will foster more growth and more traction.
There is always a need for Google search appliance kind of products in the enterprise office productivity space.