Together with it’s calendar-service Google now offers the most important elements of an Office-suite in a completly web-based and installation-free manner. Comparable to ajaxLaunch, but probably with more “impact” and a better quality.
Does Microsoft have to get afraid now? Like Nicholas Carr also thinks, probably not. Those web-based tools are – at least today – not more than an extension to locally installed office-apps. They are nice if you want to share documents, quickly edit an Excel-file if you are on a computer without Excel, and so on. Everything Microsoft plans to offer with their own ‘Live’-service.
By the way, would really like do to do your personal, private budgeting with a web-service offered by Google?
(See more of Google Spreadsheets here)