Office Live allows users to post files created in Adobe Acrobat and Microsoft Office formats and share them with other users. Unlike Google Docs and similar online apps, users still need Microsoft Office software, such as Word, Excel, and PowerPoint.

"We think that Office Live Workspace will be important for our 500 million Office customers because it's one of the first tightly integrated Web-based sharing and collaboration services designed to give a seamless experience for Office users," Kirk Gregersen, who directs product management for Office on the consumer and small business side, said in an announcement.

He hailed the service as a "good example" of Microsoft's "software plus services" approach.

Toward Seamless Online Editing

Both Office Live Workspace and Google Docs are described as "cloud " computing because they store the data on remote servers instead of on the user's hard disk. With Internet access nearly ubiquitous, storing files remotely gives users the advantage of being able to access a file from a laptop while traveling or from any desktop machine.

It also facilitates collaborative editing and revision management. Users are "frustrated with the confusing free-for-all that can result when multiple versions of documents circulate in e-mail attachments that then have to be manually pulled together by the original author," Gregersen said. "We're hopeful that Office Live Workspace helps solve these challenges by providing a place online to keep a single version of a document that everyone can work on."

While users could always upload their files to corporate servers or Web-based storage services, these are hardly seamless options. And while Google Docs allows users to upload Word files, the online editing tools are extremely simple compared to the power of Microsoft's software offerings. (continued...)

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