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Microsoft is planning free-web based versions of its word processing and spreadsheet programs.
The online versions of the programs will lack many of the features found in the full versions found in Microsoft's Office suite of applications.
Although the programs will be free to use, Microsoft is planning to fund them via advertising.
The move is seen as a rebuff to Google and others which already offer free versions of these types of programs.
The free programs are likely to be based on Microsoft's Works software suite that is often installed on low-cost home PCs.
No date has been set for when the free programs will show up on the net but the software giant told the Reuters news agency that it was "considering" new distribution and payment models for its software.
Like many others Microsoft has already started experimenting with web-based services. Windows Live lets people create a personal page that brings together many of the things they do online such as read news feeds, blogs and deal with e-mail.
I dont actually, personally, like using web based applications like this, although they will be Web 2.0/AJAX, a connection problem could lose your work, and also, the application may run slowly, like Windows Live Mail does on a solwer connection; so for now, I am sticking to Desktop based programs, and for collaboration, I dont think the application online is necessary, but just software like Micrsoft Sharepoint; however it may be good in places where desktop software is not within budget. Connection Speeds and Browsers just arn't up to standards yet, however, I really think Microsoft have got Office 2007 right, It really is excellent, and with Microsoft Sharepoint, and Outlook 2007, we are almost have an ideal collaborative Office, with the Expression Suite for creative applications, and a new Office 2007, it really does match the status of Macromedia Studio or Adobe CS2. Microsoft do get some things right, if alot
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Microsoft do get some things right, if alot 
