Google to offer subscription-based office software

Mountain View (CA) - Expanding its competition against Microsoft's market leading Office suite, Google today announced that it is going to offer a premium package of online software apps for an annual fee.

According to Googe, more than 100,000 small businesses are actively using the free version of Google Apps, which includes a word processor, spreadsheets, and a calendar.

Microsoft admitted Google was continuing to give it a run for its money. Talking about the search engine's Office clone, Microsoft Office director Kirk Gregersen recently remarked, "It helps keep us on our toes."

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