Microsoft hits back at Google

Microsoft has announced it will offer a free version of its popular Office software suite on the internet, challenging rival GoogleÔÇÖs own version, Google Apps.  The move has been seen as an attempt by the Redmond, Washington-based company to protect itself from Google, which already dominates the internet search market.  The web-based version of Office, which is expected to become available next year, could eat into revenue generated by sales of the traditional version, one of the most lucrative arms of its business. It is thought, however, that the company would make up any shortfall via advertising and charging fees for services such as online file storage. The move is the latest in a series of competitive announcements between the two companies. Last week, Mountain View, California-based Google announced the development of Chrome OS, its answer to Windows, designed to tempt users away from Microsoft-dominated personal computers. Last month, Microsoft released Bing, a search engine designed to rival GoogleÔÇÖs. Microsoft estimates that around 500 million computer users have Office installed on their PCs.  The companyÔÇÖs Business Division, which oversees sales of Office, generated around $19 billion in revenue and $12 billion in profit last year. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *