I have been working with Microsoft Office 365 Small Business version for 2 months now and I believe we have pretty much reached its limits.
As we are currently leaving migration until we are both back from our holiday we have been looking into more features of Microsoft office 365 that we might have previously missed, features such as RSS feeds, target audiences, info path lists, complex workflows and more. None of these appear to work in the small business edition, there appear to be a huge amount of restrictions that only allow us to do the simplest of task (no IT pro required). For us to continue with Microsoft Office 365 I believe we need to upgrade to the Enterprise edition, this will allow us to test features that may actually be useful to the University, it will also allow us to use features that even SharePoint 2003 currently use, such as target audience. To me, I believe that even Office 365 Small Business should be an improvement on SharePoint 2003 and not hold features back that would put 2003 ahead of small business.
So after we have looking into migration more closely and tested some of this, I believe we have no choice but to move up to Microsoft Office 365 Enterprise edition, so we can test these useful features.