Google and Sun are holding a press conference today, but the buzz is its about a web-based version of OpenOffice. Didn't you wonder why version 2.0 is so Java based? Whether the version will ultimately be Java-based or some kind of Javascript/Ajax app is unknown. If this annoucement is true, it also lends creditability to the rumor that Google will be offering a "Internet disk" to save your info on Google servers (talk about RAID!).

What is known is Microsoft must be freaking out. OpenOffice has already started to cause them headaches, but a free, web-based version backed by Google is their worst nightmare. Microsoft is only profitable in 2 areas: Windows and Office. Everything else (MSN, Xbox, their games, Encarta, Money, Hotmail) loses them money. Web applications bypass the need for an OS (the browser is the OS), and directly attacks Microsoft.

Whether the system is a success or vaporware really makes no difference. This is a very public shot across Microsoft's bow letting them know that Google can hit them where it hurts.

Update - It's official. A web-based version of OpenOffice will be offered. I wonder if Google will display ads on the side of documents.

Google and Sun: Web based Office Suite!