Small businesses, more than their larger counterparts, have really been able to take advantage of Software as a Service (Saas) applications to handle large parts of their technology needs. Salesforce and Highrise handle CRM. Basecamp handles project management. Recently, Microsoft and, to a much large extent, Google Apps are handling enterprise style messaging and calendaring.
However, no one has been able to replace that big server in the closet that serves up files and backs up the desktop computers.
Until now
Now a new startup is planning on putting that last bit of server hardware out into "the Cloud". Sunnyvale based