Microsoft is considering free versions of spreadsheet and word processing software for online use only. These will not be downloaded to the PC, but used from Microsoft’s own servers.

It’s unlikely at first to be the full MS Office suite and Microsoft will make money from the free service by offering advertising opportunities.

Google and others already offer this type of programme for free online use, so the move from Microsoft appears to be a competitive reaction. The Google Writely service is currently in beta.