Will Google Office 2.0 replace MS Office?

It’s now becoming clear — Google is crawling into Microsoft’s domain in the office and productivity suite. Check out Google Apps for your Domain:

Now you can offer private-labeled email, IM and calendar tools to all of your users for free*, so they can share ideas and get things done more effectively. You can design and publish your organization’s website, too. It’s all hosted by Google, so there’s no hardware or software for you to install or maintain.

Gmail – Offer email to your members with 2 gigabytes of storage per account, search tools to help them find information fast, and instant messaging built right into the browser.
AdSense Google Talk – Your members can call or send instant messages to their contacts for free — anytime, anywhere in the world.

Analytics Google Calendar – Members can organize their schedules and share events, meetings and entire calendars with others.

Google Page Creator – Create and publish web pages for your domain quickly and easily with this what-you-see-is-what-you-get website design tool.

There’s Writely and Spreadsheet as well though they have not been integrated yet.

Will it eventually replace MS Office? Probably, though not in the near future. Still, this could spoil Microsoft’s plan to take their service into a web/subscription model.