Google, Sun Take Aim at Microsoft

Google Office?

Google Inc. on Tuesday hinted that it might add free word processing and spreadsheets to its rapidly growing lineup of services, challenging Microsoft Corp. in setting the agenda for the next wave of technological innovation.

At an often confusing Silicon Valley news conference, Google Chief Executive Eric Schmidt touted a wide-ranging deal with Sun Microsystems Inc. to work together and promote some of each other's products -- including the Sun-backed OpenOffice, a free program that duplicates the core features of Microsoft's Office package of productivity programs.

Pressed repeatedly to explain how Google might exploit OpenOffice, Schmidt and Sun CEO Scott McNealy coyly refused to discuss specifics. But Schmidt made it clear that he envisioned a computing environment in which applications live on the Web, independent of Windows or any other operating system.

The Sun deal is "a tip-of-the-iceberg kind of thing," said John R. Rymer, an analyst with Forrester Research. "If Google gets involved and could put real resources behind it, then you might have something, a real alternative to Microsoft Office. Wouldn't that be interesting?"

Google has built a broad catalog of free, advertising-supported services that work on almost any computer with an Internet connection. Google already offers online services such as e-mail and mapping, and the company is working on a calendar program that it plans to release soon, according to a person who has seen the program.

Schmidt's vision is not new, but Google may be the first company with the financial heft, technological acumen and loyal users to potentially pull it off. Microsoft views Google's rise as a threat to its long reign over the Digital Age, which has been cemented by the dominance of the Windows operating system and Office.

So-called open source software such as OpenOffice, the Firefox Web browser and the Linux operating system is free and maintained by thousands of users. The rise of such software poses a direct challenge to Microsoft. The company's top moneymakers are the two units that produce Windows and Office.

Many analysts, though, were left baffled Tuesday because Google and Sun were so vague. Microsoft dismissed the announcement.

"What's there to say?" a Microsoft spokeswoman asked. "There's not much of an impact for us."