On 6 June 2006, Google launched Google Spreadsheets, a browser-based spreadsheet application. A limited number of users can enroll in the service, and they must have a Google account. A tour of the application can be viewed at http://www.google.com/googlespreadsheets/tour1.html .

Google's March 2006 purchase of the popular online word processor Writely, along with its steady accumulation of other capabilities, had already led Gartner to conclude that Google was in the process of rounding out an application portfolio. We suggested then that Google was likely to buy a small company focused on online spreadsheet and presentation technology (see "Google Ratchets Up Microsoft Face-Off With Writely Buy"). Google has continued to expand its collection of search capabilities (including photo, desktop, blog, geographic-location and video search), collaboration tools (such as e-mail, blogging and instant messaging) and mobile support. During 2006, we also expect Google to target a Web-based presentation application, such as Thumbstacks (see http://www.thumbstacks.com/ ).

Google's recent actions appear to bring it into competition with Microsoft. But Google isn't targeting the enterprise user space, which Microsoft dominates, or attempting to compete directly with Microsoft's desktop applications. Rather, Google is targeting consumers through its widespread brand awareness and by relying on social networking to power the adoption of its applications. Google doesn't expect enterprise users to use online versions of office applications. It will be a long time, if ever, before Web-based applications provide the extensive functionality of traditional office suites. In many cases, however, the reduced-function Web-based applications are "good enough." And they may be particularly good enough when employed in "civilian" collaborative environments (for example, by "soccer moms" or by investment clubs) or environments where nothing is installed today. Google also likely hopes that its activities will distract Microsoft from going after Google's core advertising market.

• Users: Stay informed about the capabilities offered by Web-based applications. Though they may not be ready for adoption by all enterprise users today, they offer many features (such as Web-based collaboration) not generally available through other means.
• Vendors: Google and Microsoft aren't the only vendors deploying these tools. Open-source applications are an opportunity to acquire users.

Analytical Sources: Rita Knox, Ray Valdes, David Smith and Mike Silver, Gartner

• "Microsoft's Next-Generation Platform Will Move Beyond the Desktop” — Office Live and Windows Live offer important statements regarding Microsoft's corporate strategy. By David Mitchell Smith and others
• "Deciphering the Enigma of Google's IT Intentions” — Google's potential impact on the IT market is enormous, but it must do more than advertise well to unseat the leading software vendors. By Whit Andrews

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