Boy, I would not want to be Microsoft. Google just keeps calmly plodding along and throwing out new programs from time to time that seem to chip away at Microsoft's market domination. Of course, there are lots of other companies out there doing the same thing.
The latest news is that Google is putting out Google Spreadsheets, which seems to be meant to rival Excel. It will apparently have collaborative capabilities, which could be pretty handy. Check out the New York Times article here.
Of course, gOffice.com and others have spreadsheet capabilities as well.
One day we may reach the point where we no longer need to buy the expensive Microsoft Office Suite... or maybe we are there already?