War of words between Google & Microsoft on MS Office Collaboration

Two weeks back Google announced a product called “Google Cloud Connect for Microsoft Office” with the below video. This free product helps Microsoft Office (Windows application) users to collaborate (share, backup, simultaneously edit Word, Excel & PowerPoint).

Last week Microsoft has replied back in kind with the below video. Microsoft has been offering its own collaboration using its on-premise offering of Microsoft SharePoint Server or on the cloud with Office Live Workspaces (or SkyDrive) or SharePoint Online.

There have been many discussions in the Blogosphere why is Microsoft doing this, are they threatened or they are feeling comfortable to come out in open. Whichever is true I find this to be a renewed interest in improving the basic office productivity suite after a long time. It is going to be a good time for consumers like you & me.