Microsoft said that it will offer a web-based version of Office for free. The move could ramp up competition with Google Docs, an online applications service released three years ago.

This is the latest happening in the ongoing competition between Microsoft and Google. Last week, Google announced plans to launch new Chrome operating system in an attempt to grab a share in the OS market, which is currently dominated by Microsoft’s Windows operating system. Microsoft has also launched a new search engine Bing, last month.

Microsoft said that its new Office web applications will include lightweight browser versions of Word, PowerPoint, Excel and OneNote that are expected to provide access to documents from any location.

The new web-based version of Office would reportedly allow users to access data from any internet-linked computers. It is also expected to help collaborating online using the co-authoring capabilities in the new version of Word, PowerPoint, and OneNote.

Chris Capossela, senior vice president of the Microsoft business division, said: “From broadcast and video editing in PowerPoint, new data visualisation capabilities in Excel, and co-authoring in Word, we are delivering technology to help people work smarter and faster from virtually any location using any device.”

Microsoft is planning to release the new web offerings in the first half of next year. The new offering has been given to tens of thousands of testers at a conference for business partners in New Orleans.