Google Acquisition Signals New Rivalry - New York Times

Google Acquisition Signals New Rivalry - New York Times: "The acquisition puts Google in direct competition with Word software from Microsoft and signals the intention of Google to expand its reach into Microsoft products.
While Microsoft is already testing small-business software that is delivered over the Internet, the company is not offering word processing software that is delivered using the Web.
Upstartle has four employees, according to the company's Web site."

Reality check: Microsoft has many web-centric authoring tools, including those widely used in MSN Spaces, SharePoint, etc. Microsoft is also in final testing of Excel Services, which will enable web-centric, interactive spreadsheet authoring -- also Office form server/services that enable zero-footprint-client InfoPath-style forms.

I don't mean to suggest Writely is bad or that Microsoft is omnipotent, but articles suggesting 4 smart guys who just got acquired by Google are going to pivotal in the extermination of Microsoft aren't presenting the full picture...