Office 2007 has 81% of the business productivity software market and Google has 4%. That substantial lead is not preventing Microsoft from offering a web-based version of some of their most popular applications.
On June 15th, Microsoft will offer a scaled-down version of Word, Excel, PowerPoint and OneNote via Microsoft Live. The online versions are not meant to replace the new Office 2010 suites which were officially launched to business customers today, but rather to complement the installed versions.
Microsoft is trying to find a balance between online convenience and affordability to compete with Google Apps while still making the Office 2010 feature set attractive enough to warrant users paying for a license.
Early reports give Microsoft good marks for its initial foray into the online productivity suite arena. However, there are limits to the feature set. On the positive side, formatting between desktop and online versions was impressive.