Google has announced the integration of its Google Apps with Salesforce.com's CRM applications.

An excerpt from News.com

Likewise, Google hasn't ruled out working with other partners. "We're committed to advancing the Web as the platform and partners are key to our growth, whether it's a developer doing custom applications and gadgets, a company like Appirio making calendar sharing even easier, or Salesforce.com deeply integrating Google Apps into their CRM products," said Scott McMullan, Google Apps partner lead, Google Enterprise.

The move was part of a request that SalesForce was getting from its customers. The product will compete with enterprise offerings over the web that includes Microsoft's CRM efforts.

An excerpt from New York Times

Google and Salesforce, two of the most important proponents of the idea of delivering software as a service over the Web, have grown increasingly close over the last several months. "The enemy of my enemy is my friend, so that makes Google my best friend," said Marc Benioff, chief executive of Salesforce.com.

The move is being heralded by some as Google's first steps to make a serious dent in the enterprise space. Perhaps a much closer merger of Salesforce.com and Google in the future cannot be counted out. SaaS is being seen as a solution for small and medium firms that look to be cost effective while not wanting to invest in the loop of software licenses.