Office Live is now taking beta applications. Apparently they will go live sometime in early 2006. According to the website:
 

Today, an online presence is almost a requirement for small business success. That’s why Microsoft is introducing Microsoft® Office Live—a set of affordable business productivity services designed to help you grow your business more easily by establishing a professional presence online.

Microsoft Office Live will provide your company with its own domain name, Web site, and e-mail accounts for free.

Additionally, Microsoft Office Live will offer you and your employees expert business management applications, such as customer, project, and document management tools, and a security-enhanced private Web site—affordably managed and maintained by Microsoft—where you can work together and share information with your employees, customers, suppliers, and contractors.

So it won’t replace Word and it is not targeted at end-users, but sooner or later, I would assume that regular users will be going in the direction as well.
 
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