While browsing through the Girl's Guide to Project Management (found here) I came across a case study on using SharePoint for Project Management. Having used SharePoint for Project Management I thought this would be a good blog where I could elaborate on the case study. Benefits of SharePoint
Overall, SharePoint is a great tool for project team collaboration. The Project Manager can highly customize a project SharePoint site to track issues, risks, expenses, milestones, contacts, calendar, and so on. The search feature is great as it not only goes through every item and doc in your site, but it can also look inside documents. Another great feature is the integration with MS Office as you can work on your documents directly in SharePoint. It also features built-in versioning of docs so you can see all the past changes you made and who made them. And if someone accidentally deletes a document you have a 30 day recycle bin to save the day. On top of all this is the ability to set permissions on any doc, list, or item in a list. What is nice about this is you can make your project schedule read only for everyone except yourself. This is just the basic stuff as a power user could push the site even farther with SharePoint Designer and workflows.
Weakness of SharePoint
Where SharePoint lacks is in Portfolio Management. It is not intuitive to bring the data together from all your project sites and roll that data up into portfolio dashboard reporting. This gets more difficult if the project sites have been modified by the project manager. This can be overcome, but it does take a little work and standardization.