Thanks to Google (GOOG) and startups such as Zoho, there are free, Web-based programs that can sub for Microsoft Word, Excel, and other elements of Microsoft Office. While these freebies have yet to make a dent in the sales of Office, Microsoft (MSFT) is jumping on the Web-centric approach. Its suite of services for small businesses, Office Live, is a useful if slightly awkward first step. If history is any guide, Microsoft will gradually come up with better and more comprehensive Web offerings.
The Office Live name is an unfortunate choice, since its pieces have little to do with Office and are certainly not Web-based versions of Word, Excel, or PowerPoint. Furthermore, Microsoft tends to stick the name "Live" on any Web-based product, so the same brand is also used for a range of consumer services, including instant messaging and social networking.