Microsoft recently announced a web-based version of its Office 2010 offering.

Office web applications will include a ‘light’ version of Word, Excel, PowerPoint and OneNote. User will be able to access their documents for free online, view edit and create new documents and even simultaneously share and collaborate on documents.

The announcements comes on the back of intensified competition between Microsoft and Google; Microsoft having recently launched Bing and Google only last week announcing its intended launch of a free OS next year.

Office web applications seem to be a direct response to Google Docs and other such web based programs which are challenging Microsoft’s dominance in the office productivity space. The application will be supported in Firefox, Internet Explorer and Safari with no word on Chrome compatibility.