Zoho, a web-based productivity suite that was called a “fake Office” by a Microsoft VP, is announcing a significant partnership with Google today. The startup will be a launch partner for Google’s recently launched Google Apps Marketplace, which allows vendors to sell applications that compliment Google Apps. Here are our notes from the announcement. Zoho will be integrating two of its over 20 business applications – Zoho CRM and Zoho Projects with Google Apps.

So starting today, Google Apps users will be able to add on-demand CRM app Zoho CRM and project management software Zoho Projects into Google Apps. While Zoho has previously rolled out the ability log-in to its applications via your Google Apps IDs, the two applications have been specially formatted for further immersion into Google Apps with App’s extended APIs. IT admins will now have an option to add Zoho Apps to their domains through Google Apps Marketplace. Once the IT admin adds a Zoho application to their domain, all users within the domain will have access to the Zoho Application through Google universal navigation.

In the version of Zoho CRM for Google Apps, Zoho will allow Google Apps domain admins choose the users he or she wants to provide access to Zoho CRM and can import users from Google Apps contacts. And if you have Mail Add-on enabled in Zoho CRM, you can POP your email from Google Apps to Zoho CRM. These emails will show up in the CRM system automatically for each contact. Emails sent from Zoho CRM will also show up in Gmail in Google Apps.

Zoho CRM and Projects will also be integrated with Google Apps Calendar. Google Apps users will now be able to subscribe and view their CRM and Projects events right within Google Calendar. Additionally, Zoho Projects and Zoho CRM allows you to attach documents directly from Google Apps.

The fact that Zoho was chosen as a pilot partner for this program isn’t surprising. Although some of Zoho’s applications compete with Google apps products, the startup has consistently pushed interoperability with Google Apps. Over the past two years, the startup launched a deeper integration with Google Docs; and the ability to log-in with Google and Yahoo IDs. And according to our latest stats, Zoho has definitely reached over 2 million users, and has a loyal follower base.