Groove is a pretty cool product. Always has been. When Microsoft bought Groove, it became a point of worry for me and many others. Could they have purchased it purely to kill some competition?
Microsoft did some good things with Groove. They’ve released (what looks like) a decent server platform for it, elevating it from a peer-to-peer product to one with a stronger reach into the Enterprise. Groove can now link to, and leech, information from Sharepoint sites.
Microsoft’s pricing of Groove is a death-sentence for the product. It’s hard to convince anyone that Groove is worth over $250 per copy (retail). Not when you can run Sharepoint Services as your server for free, and a product like Colligo to do your offline work (we use Colligo heavily here).
I have had several clients now evaluate their use of Groove and make the transition to other solutions. A couple to SharePoint, one completely dropping the functionality and going with a small online storage vendor.
Same on you, Microsoft, for killing yet another potentially cool product!