DigitMemo.com

Microsoft’s move hopes to leverage the success of their Office client software to drive users to a new online collaboration site dubbed Office Live Workspace.

To that end, the company will give registered users 250 MB of storage space, which can be used to store documents “in the cloud” or even “host” them for comments by other users equipped with just a web browser. However, and this is important: you cannot create new Office documents with this feature nor can you edit documents beyond adding comments without having a copy of Microsoft Office installed locally.

As you can see, this is not a “Google Docs killer” or even an “answer” to Google Docs. This is not an online office suite, it’s “software plus service.” Microsoft’s move here protects the company’s traditional Office business, in that it’s really positioned as a value-add to Office, rather than an Office alternative. Microsoft has seen success with its business-oriented SharePoint offering, and Microsoft is taking a kind of “SharePoint Lite” approach with OLW.

Microsoft says that OLW will integrate back into the client software, which means that users will be able to manage OLW documents from within Office itself. You can save directly from Word, Excel or PowerPoint to the online storage. OLW will also allow users to store files from other office suites, although integration will not be complete.

OLW will officially support Office 2003 and 2007 when it opens later this year. Currently users can pre-register for the beta here.