Since being bought by Google, the online word processing system Writely had closed its doors to new registrations and started up a waiting list. They have now started issuing invitations to people on the waiting list. In a similar style to Google Spreadsheet, Writely saves your work as you go along, and allows you to share documents with other people, and collaborate with them in realtime. So it seems Google is well on its way to offering a full office suite online. There has been speculation in the past about them working on an a desktop operating system, but I don't think there's really any need for them to do that when with these kind of tools it doesn't matter what OS you are using.