MS to compete with Google in web apps

Badly:

Office Live Workspace will give users about 250 megabytes of storage, or room to keep about 1,000 average Office documents "in the cloud." PC users can upload Word, Excel and PowerPoint files, and use the site to e-mail friends or colleagues and invite them to read and add comments to those documents through a Web browser.

However, if users want to edit the text, they must open the document using an installed copy of Microsoft Office.

Nope. Lock-in doesn't work anymore.