At least for me, Microsoft has no need to be nervous about Google Docs (or other application) replacing its products. Google Docs is good; but does not have all the functionality that Microsoft Office has (Word in particular) in terms of document and table formatting, flexibility, etc. In addition, my place of employment strongly discourages the use of Google Docs for any business-related collaborations due to concerns over document security.
On a personal level, our family does use Google Online Applications to keep a family calendar (Google Calendar) where we can keep track of who is where when, etc and a family "to do" spreadsheet (Google Docs) that lists jobs, who is to do, projected (requested) completion date. Both of these have worked well for us for the past six months or so. Another list we have created in Google Docs is potential guest to take sailing on our new boat!
I did take the time to visit Z0ho Writer and there are things about it that I like better than Google, but I hesitate to start another account on a website with a set of services similar to Google because then I would have to keep track of what I had created on each of the sites. When it comes to computer tools and Web 2.0 applications, I'm all for "one stop" shopping. For example, if Google has all the applications that I need, then why bother to add another site with the same / similar applications to my "tool box".
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