It was all over the news a while back. Microsoft announced that a new service would provide small businesses a number of hosted service that included a web site (complete with your own domain name), e-mail accounts and web applications to help with everyday tasks like collaboration between employees, project management and customer communications.
I looked at it a while back, but the only thing we could do at the time was to sign up and wait. Well, now the service is available in beta form. I applied for a free account and got set up with my own domain and everything. Very nice... There are some restrictions, though, like the fact that the service is only for US residents.
Check it out for yourself at http://officelive.microsoft.com/