Can Lion Server replace Google Apps

Hello,
Our business has just one imac, but we use it to manage the diaries of 15 staff. We have been using Google Apps (with our domain) to create 15 users and it has been handy to schedule diaries in this way.
I must now use Microsoft Office for Mac, everything works fine except that it does not sync with Google Apps calendars. At all! Forums say that it is pointless trying.
So my question is.
- can I ditch Google Apps
- turn my imac into a 'lion server' (I have already purchased the app)
- set up 15 user accounts
- then sync these accounts with Outlook for Mac?
If anyone can possibly advice and point me in the right direction for step-by-step instructions, then that would be fantastic.
Otherwise, are there any other altneratives???

Problem solved.  I had smpt and not SMTP.  Fat finger problem.

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