As the Google – You Tube deal is still hot on one side , Google today announced Google Docs and Spreadsheets. This is a online Word processor and Spread sheet application on the Web in a single place. There do have collaboration built into the same.
They take one step at a time (bought Writely and released Google spread sheets) , but sturdy quick steps. Writely was bought over during March. Spreadsheets was released in June and within next 3 months time they provide it as a single bundle.
For me this just seems like the tip of the ice berg. They sure do have some BIG plans and are really focused / moving towards it.