It's been more than three years since the debut of Writely, the free, browser-based alternative to Microsoft Word quickly snapped up by Google. Nearly two years since the formal release of Google Docs & Spreadsheets, now known as just Google Docs. Let's admit it: Google Docs is no YouTube, Gmail or Google Maps. A survey of 2,400 American Internet users by Clickstream found that half of them use Microsoft Word, but only one in a hundred uses the free, instant-access Google Docs. Obama's going to change all this, right?

Of 49 Google products, 22 are still in beta — not including anything released under Google Labs. In technology parlance, a beta product is one that is still being tested. In fact, Google's even charging users of Google Apps for Your Domain money for both Gmail and Google Docs. So why the beta tag? My theory is it's an easy way to keep from having to offer customer support when problems arise, since beta also traditionally means "use at your own risk." [Royal Pingdom]

An anonymous GE spokesperson told Silicon Valley WebGuild that the corporate megalith has punted on Google's browser-based office applications in favor of Zoho tools. For Zoho, it's a big step up from popular-with-geeks status and closer to large-scale enterprise vendor credibility. What killed Google? The money quote:

Google Docs, one of the permanent-beta applications that Google offers as a free, lightweight alternative to Microsoft Office, went down for a brief spell just before 9 a.m. While it's back up now, as a reader pointed out, it's "Not very convenient when you have important files you need for a meeting." Welcome to the future of cloud computing, where instead of a blue screen of death, you get a server error message.

Today at an event in Seattle, Bill Gates will announce Microsoft Online Services: email, calendars, contact lists, video conferencing for small and medium-sized businesses. To start, Microsoft will offer free access to the services, which are online versions of Microsoft products Exchange, Office, and SharePoint. Someday Microsoft hopes to charge, but for now, the plan is to halt Google's encroachment. Microsoft executive Chris Capossel told the WSJ he expects half of the company's Exchange customers to be using the new service in five years. batmoo)