bharatm writes "It's now been a decade since Microsoft bought Hotmail, the web-based e-mail service, for about $400 million. Now Sabeer Bhatia (the site's co-founder) is challenging the software giant's core $20 billion office desktop business. Yesterday Sabeer Bhatia released a free online rival to the bestselling Office suite of applications that will allow users to view, share and edit documents from any computer. 'Designed to help consumers avoid expensive upgrades and to foster collaboration on a secure internet platform, Live Documents matches features found in Office 2007, the most recent version. It will be given away to individuals with 100MB of free data storage space per user. Companies will pay for the system, either hosted remotely or on an internal server, at a discount to Microsoft's licensed technology.'"