Google annouced a new (beta) API yesterday, Google Gears. Gears is a logical extension of Google's AJAX initiatives in that it allows developers to create AJAX applications that can run locally on the browser in offline mode as well as when the user is online.

Both the Register and ZDnet have reports on the release but while ZDnet goes more into the details of what it consists of, it fails to point out the party most likely to be upset with this move - Microsoft. The Register, on the other hand, is less shy:

The search engine behemoth marked out clear intentions to enter territory dominated by Microsoft by offering free, open source technology that works without an internet connection.

[...]Google already offers its own web-based docs and spreadsheets product to its users and said it plans to introduce programs including email, calendars, and word processing to its millions of users via the off-line browser extension software.

At this point the threat that Netscape posed to Microsoft all those years ago, that the browser becomes the OS, looks like it might be finally realized. And Google, unlike Netscape, has a lot of money, which means that Microsoft will struggle to put it out of business. Indeed Google is busy making noises that it wants gears (or something similar) accepted as a standard and implemented in all browsers, thereby ensuring that Microsoft will find it hard to make some of its favourite tricks work - such as changing standards and formats.

Of course if those Microsoft/Yahoo rumors were serious then this could be the moment that Microsoft bites the bullet and overpays for Yahoo. Whether Yahoo plus MSN plus... can manage to tempt surfers away from their Google habit is unclear, but so long as people continue to use Google as a search engine, and hence as long as advertisers find Google a good way to get coverage, Google will continue to have piles of money to throw at projects like this which benefit the internet users but discomfort Microsoft.

One final thought: because Google comes from a webcentric view, one suspects that Google's solutions will implement collaboration features well. This could be the key to people quitting the profitable Microsoft Office suite. Microsoft have put collaboration in Office but I don't think many people use it because it doesn't work the way they want it to. Google's tools probably will...