In a response to Google’s announcement last week, Microsoft said it would offer Office software accessible via Web for free.

Microsoft will release a word processor, spreadsheet, presentation software and a note-taking program with the similar look and feel as that of Google App in the Office suites.

“Office 2010 is the premier productivity solution across PCs, mobile phones* and browsers,” said Chris Capossela, senior vice president of the Microsoft Business Division at Microsoft.

“From broadcast and video editing in PowerPoint, new data visualization capabilities in Excel, and co-authoring in Word, we are delivering technology to help people work smarter and faster from virtually any location using any device.”

Microsoft announcement is a response to Google move, according to analyst Matt Rosoff of Directions On Microsoft, a private firm that tracks the Redmond, Washington-based technology firm.

This is a move that they probably wouldn't have made if they didn't have to, but there is enough competition bubbling up that they thought they needed a response, Rosoff said.

The two mogul tech company is increasing their level of competition; Google last week announced its plans to create an open-source 'Chrome' Operating system for free, a direct challenge to Microsoft Windows Operating system