Today Google announced its Office Suite clearly attacking Microsoft where they are weak still by positioning it as a collaboration tool to start with.
It is currently called Google Apps for Your Domain since it lacks Writely and also Spreadsheets still. But those programs are to follow according to InformationWeek.
The initial Google Apps contains e-mail (Gmail), IM (Google Talk), calendar (Google Calendar) and a website design program (Google Page Creator). All are of course hosted applications.
Google said that they will provide software for specific customer groups "from family websites and community groups to non-profits and small
businesses, as well as universities, large enterprises, and ISPs."