Not sharp enough. Looking at the EXIF data for the image, it is shot at f2.5, 1/15s, ISO 250 no flash. If it were me, with no flash you need to turn the ISO way up indoors (ie 800 or above) in order to get a decent shutter speed... at 1/15 its no wonder its not sharp - even if you hold the camera perfectly still (ie use a tripod) chances are the dog moving will make the image soft like this. I would have thought you want to be at at least 1/125 but thats going to be really high ISO (2000) - you may have to compromise and get shutter as high as you can for a reasonable ISO. Maybe try ISO 1600?
Also would be better if he were looking into the lens and his ear wasn't chopped off! Give the shot another go and post the results in this thread.