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From BBC news:
http://news.bbc.co.uk/1/hi/technology/5370144.stm
Microsoft is planning free-web based versions of its word processing and spreadsheet programs.
The online versions of the programs will lack many of the features found in the full versions found in Microsoft's Office suite of applications.
Although the programs will be free to use, Microsoft is planning to fund them via advertising.
The move is seen as a rebuff to Google and others which already offer free versions of these types of programs.
http://news.bbc.co.uk/1/hi/technology/5370144.stm