I have been playing with the Google Apps. They are super cool. The two featured apps are Documents and Spreadsheets. They are web based Word and Excel type applications. They allow users to use the basic functionality of Word and Excel without the costly licenses or bloated software. Also, they are available to all users because they are OS agnostic. Another cool feature is that you can save to web. That means that if you create a document at work, you can have it at home. There is not the same need to worry about versioning.
Other cool features include the ability to upload documents, save to Word/PDF/HTML/OpenOffice/Excel/CSV, export to Blog including WordPress, collaborate with other Google Apps users, and much more. Check it out.
Also check out an interesting article about Google Apps from IDG called Google Apps upgrade threaten Office.