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dkreifus
Google Inc. took a step toward challenging Microsoft Corp.'s dominance of computer software with the announcement Tuesday of a collaboration agreement with Sun Microsystems Inc.

The move could lead to Google offering next-generation word processing, spreadsheet and collaboration tools that would take on Microsoft's industry-leading Office suite of software.

As part of the agreement, Sun will offer Google's search toolbar with downloads of its free Java software, which is required to run a variety of Web-based applications and works with multiple operating systems.

The two companies, which did not disclose terms of the deal, said they also agreed "to explore opportunities to promote" other Sun technologies, including the freely available OpenOffice.

OpenOffice, an offshoot of Sun's StarOffice, is a leading challenger to Microsoft's ubiquitous Office suite, a major cash cow for the world's largest software company. Both offer a word processor and spreadsheet among other applications.

"OpenOffice is already an alternative, but if Google gets involved in supporting it, that could be the thing that puts it over the top," said Forrester Research analyst John R. Rymer.

Neither Sun CEO Scott McNealy nor Eric Schmidt, Google's chief executive, would offer details on when or how Google might distribute Sun's software. Both said the Google toolbar option for Java downloads is just a first step in a significant agreement.

"You can speculate all day long about all the different ways we can go and work together. They're all legitimate speculation," McNealy said. "We only want to talk about what we're talking about here now ... we expect more."

Microsoft did not immediately comment.

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Teksu
I would so use google office smile.gif
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