Just a couple of months ago Google bought Writely, an online collaborative word processor. And now Google Labs is working on Google Spreadsheet!
Google Spreadsheet is still in a "Limited Test" state. Meaning you have to sign up and hope you are one of the happy few 
to try it out.
Already available is a small tour that describes the new features:
- Creating spreadsheets
- Create basic spreadsheets from scratch.
- Upload your spreadsheet files.
- Familiar desktop feel makes editing a breeze.
>
- Share spreadsheets
- Choose who can access your spreadsheets.
- Share documents instantly.
- Edit with others in real time.
>
- Storing spreadsheets
- Edit from any Internet connected browser.
- Online storage and auto-save.
- Save and export copies in CSV, XLS or HTML.
I can't say he anouncement of Google Spreadsheet was unexpected. Actually it's just the next logical step. Microsoft announced Office Live and in the mean time Google works on it's own Google Office Suite.
A list of Micrsoft Office applications and their Google counterpart:
<sidetrack>SketchUp is a 3D moddeling tool and a recent Google acquisition. SketchUp in combination with Google Earth is another nice mashup sample. Build a 3D model of your dreamhouse and place it on the map in Google Earth. Smart move Google!</sidetrack>
And the list of applications fighting for marketshare continues. Healthy competition is a good thing, it keeps them alert.
I guess Microsoft is still more focused on the upcoming release of Vista but as soon as Vista is shipped they will put their full focus on webapplications. I can only say it's going to be interesting ...