Steve at Scoroncocolo has written a very good article on the comparisons between Google Docs and Microsoft Web Apps. As a matter of fact his article is perfect timing. I personally have been intensely exploring and using Google Docs.
Both of these online applications offer you the ability to create documents online inside your web browser; whether it be a letter, a spreadsheet, a presentation, etc… Why spend hundreds of dollars when all you may need is what is being offered (online for FREE) by Google and Microsoft.
My concerns in all of this is is the privacy factor; so, always keep that in mind when posting sensitive in nature documents. I realize our accounts to these online apps are password protected; however, I would like to see both entities offer password protection and encryption options for each file being stored online. Any files you store online, make sure you back them up at the PC level.
Read Steve’s Article: Microsoft Office Web Apps Versus Google Docs