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The following is taken from Network World (http://www.networkworld.com/news/2008/032608-microsoft-sharepoint.html). Network World also states in the article that SharePoint Server 2007 is the fastest growing product Microsoft has ever had.
 

Six faces of SharePoint
Microsoft’s Office SharePoint Server is cutting a swath across IT with its many capabilities. SharePoint has six focus areas, each with its strengths and weaknesses.

SharePoint

Strengths

Weaknesses

Collaboration

•  Team workspaces let users share files easily.
• Easy to set up.

•Social-networking computing tools need improvement.

Portal

•  Application development and integration framework for building composite applications.

•  Scalability issues need to be resolved with technology advances, not hardware.

Enterprise Search

• Extended to line-of-business applications
• Access controls across local and remote data stores.

• Still evolving, tighter integration with network architecture needed to compete on high end.

Enterprise content
management

•Enhancement to basic features, such as check-in and -out, versioning.
•New additions, such as business document processing, Web content management.

•  Compliance, records manage-ment need improvement or partner add-ons.
• Migration issues from Microsoft Content Management Server.

Business process
and forms

• XML-based forms strategy with easy integration to enterprise-application-integration tools including BizTalk.
•  Built-in human workflow support, as well as lightweight event handlers.

•  Web forms are limited to a subset of full client forms’ features.
•  Relatively difficult development experience for moderate and advanced features.

Business intelligence

•  Server is solid foundation.
•  Server-based platform for Excel documents.

• Business-data catalog awkward in getting information in and out.

CREDIT: NETWORK WORLD; SHAREPOINTSHEPHERD.COM