[Author's Note: This article has been edited to correct inaccuracies in Google Docs functionality in Firefox, and Google Apps support.]
Game on. Microsoft holds a virtual monopoly on office productivity software, but Google is virtually synonymous with the Web. Google has tried to challenge Microsoft with Google Docs--the productivity component of its Google Apps suite--and now Microsoft is taking the battle onto Google's turf with the cloud-based Office 365. It's go time, as Microsoft released its suite Tuesday.
After spending several seasons with Office 365 in beta testing form, as well as with Google Docs, here's how the two sets of tools compare. (See our earlier coverage here, as well as side-by-side pictures comparing Microsoft's and Google's suites.)
Features
The actual features and functionality of the tools have a lot of bearing on which productivity suite you choose. The Word Web App is more visually appealing and polished than its Google counterpart, but overall the two seem roughly equivalent in features.
![](https://images.pcworld.com/images/article/2011/06/powerpoint_themes-5190377.jpg)
As I added slides and created content, I inserted an image. In Google Presentations, the image filled the whole slide and I had to manually adjust it to fit the available area, but the PowerPoint Web App was smart enough to size the image automatically.
When push comes to shove, the features of the Office Web Apps in Office 365 are pretty much the same as what Google Docs has to offer. However, Microsoft makes key features easier to get to, and works more intuitively. For users already familiar with Microsoft Office, the Office Web Apps version will be a comfortable fit.
Browser Compatibility
Both Office 365 and Google Docs are Web-based platforms, and they will work from any Web browser--more or less. It should not come as any surprise that Google Docs excels in the Chrome browser while Microsoft Office 365 works best in Internet Explorer. It makes sense that each would make sure--first and foremost--that their online productivity tools are optimized for performance and functionality in their own browser.
I opened both Office 365 and Google Docs in Internet Explorer, Firefox, and Chrome for comparison. In Internet Explorer, Office 365 works fine. Google Docs seems to work for my purposes, but there is a nagging yellow warning bar across the top letting me know that Internet Explorer does not support all features of Google Docs.
In Chrome, both productivity platforms work as expected, but Firefox is another story. I didn't have any problem logging in and using Office Web Apps in Office 365, but I was unable to log in to Google Docs from Firefox 5. I got redirected to an error page claiming something about my browser not accepting cookies--annoying, but not a deal breaker. After I went into the Firefox options and cleared the history and cache, though, I was able to connect with Google Docs in Firefox 5.
Given that Office Web Apps and Office 365 work in all three browsers, while Google Docs claims it is only partly functional in Internet Explorer, the edge here goes to Microsoft.
File Fidelity
This area is a slam dunk for Microsoft. Sorry, Google.
It's a Microsoft Office world. Even if you use an alternative office productivity suite like Google Docs or LibreOffice, the vast majority of the world uses Microsoft Office. The usefulness and value of your alternative suite is measured by how well it works with Microsoft Office. If files that are sent back and forth between partners, peers, and customers end up with formatting issues, it creates frustration and requires unnecessary effort to fix.
![](https://images.pcworld.com/images/article/2011/06/file_infidelity-5190381.jpg)
It doesn't hurt, either, that with the Word Web App I can just click a button on the ribbon bar to open the file in Word rather than having to download it.
Real-Time Collaboration
Collaboration in real time is the primary selling point of Google Docs, and is the main area where Google should easily outshine Microsoft.
Google Docs can be shared with any other Google account. The users who share a file can all access and work with it simultaneously. Each user is assigned a unique color so you can easily identify who is making changes to what. You can also open a bar on the right side of the screen to chat with your collaborators. Microsoft lets you share files with anyone, and also offers real-time collaboration and chat capability with coauthors.
![](https://images.pcworld.com/images/article/2011/06/shared_file_users-5190389.jpg)
The net result is that Microsoft offers more and better real-time collaboration than Google.
Cost
![](https://images.pcworld.com/images/article/2011/05/07d_bizcr_chart1000px-5175280.jpg)
Still, the $72 per year per person is a significant cost savings over the equivalent cost of purchasing and maintaining the server and software infrastructure it would require to deliver the tools and services in Office 365--never mind the cost of the salary for the IT admin to run it all. But for individuals or smaller organizations, those numbers still add up quickly when compared with zero.
With the paid subscriptions, both Google and Microsoft put their money where their proverbial mouths are and financially back a guaranteed uptime service level agreement (SLA)..
The Verdict
![Office 365 vs. Google Docs Smackdown](https://images.pcworld.com/news/graphics/225408-office365_google_apps_180_original.jpg)
With the possible exception of cost, it seems that Microsoft has an edge in almost every category of comparison, but both Microsoft Office 365 and Google Docs have their pros and cons. Weigh the benefits of each, and carefully consider which online productivity platform is the right one for you.