I wouldn't call it a war yet... They're just gonne add a few buttons and a toolbar... I don't see any scary bites towards microsoft just yet.
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Its true
From CDW.com:
Microsoft Office 2003 Professional $469.00
Microsoft Office 2003 Standard $369.40
Microsoft Office 2003 Professional version upgrade $319.95
Yes these are both goog points...

But i think it has every oppurtunity of full blown success, i think we are on the dawn of a new era in terms of 'office' computing. Microsoft is slowly but surely being reckognised as a rip-off company with products that to be fair are good quality but are extremely over priced. As soon as people start getting the message, that they dont need to buy an all-in-one PC with print, scanner and a load of useless software (which don't be fooled will happen), other software companies, not necessarily google will be revelling in success. First of all though, the home users and small business need to pick up on it, then and only then will these sofftware apps will be taught in our schools, colleges and universities and ending eventually big business.

Microsoft is on the down, its blaitantly obvious, but the key thing is compatibility, u can take a word.doc to almost any PC and view it, with google is this going to be possible, no you say, but if its free online *downlaod*, hmmm..... with the right promotion......

Another aspect to consider, how cheap are good PC's these days!!! Technology is progressing like nobodies business. In a few years time, how much are you going to be willing to pay for a performance PC? Are you going to want to fork out a few hundred $/£ on a word processor?

I think the only hiccup could lie with the spreadsheet and powerpoint. The spreadsheet for many reasons, but mainly people being trained/fluent with its formulas etc etc And powerpoint, u make a presentation at home (in powerpoint) take it to a confrence, and guess what, they dont have internet connection to downlaod the proggy, but wait there, its FREE to download, i can save it to USB stick and install it on as many machines as i want!!! Result!!!

Every chance of success... Just give it a little more time... Just a little []

Spose its the hackers way, free and open data for everyone, maybe