Google is set to launch Gmail, talk, calendar and web page creator as a service supported through advertising. Google will store both the application and data. To this they are expected to add Writely and their spreadsheet tool that allows collaboration. This is a direct threat to the $12 billion Office franchise. Microsoft is trying to defend its installed base and adding SaaS features via Live. Google, on the other hand, is trying to move its 80 million unique visitors to try its applications. While established corporations are averse to changing, new users and enterprises may be willing to experiment with a lite product.