Google Docs: Safe Enough for Your Business?

I’ve recently been testing out Google Apps for Your Domain to see how well Gmail integrates with my web host and apparently it does the job pretty well. I like Gmail’s interface way better than SquirrelMail (no offense to those of you that swear by SquirrelMail).

I came across this blog post about a cross-site scripting vulnerability in the way IE handles things when you’re using Google Docs. The developer that discovered it reported it and it was quickly patched, and there were no reports of the security hole being exploited.

Some people have said that using Google Docs or any other 3rd Party or online office suite isn’t a good idea because of possible security breaches and privacy concerns. I say, provided you aren’t in education, medical systems, government, or politics, the rest of you are probably OK to share your documents online within your organization – and it’s a heck of a lot cheaper (free, even) than other alternatives.

What do you think? Is Google trustworthy enough for your family finances, personal word processing documents, budgetary spreadsheets for your business, or your personal digital photos? Should small businesses trust their data on Google’s servers in exchange for convenience and cross-platform compatibility?

Let me know in the comments what you think.