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Response from Eric Schmidt, Google Chief Executive: Contrary to popular perception, applications such as Google's Docs & Spreadsheets are not designed to compete directly with Microsoft's desktop Office applications and suite. We don't position it as an office suite. We position it as something you use casually...It's a different way of managing information. Beyond enabling people to access information from any device, anywhere, Google's products are free; Microsoft's applications are stored on the desktop and are not free. Google's applications rely on the storage of data on servers in the "cloud," which was the premise of network computing. The proliferation of broadband Internet connections and reliable server farms means that the mid-1990s dream of network computing--promulgated by his former employer, Sun Microsystems, and Oracle--can finally come to fruition. The network computer at that time didn't really work. Finally, now the architecture works. Fundamentally, it's better to keep your money in the bank than in your pocket.
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