In line with its software and services strategy, Microsoft on Monday announced new services such as Microsoft Office Live Workspace, a new Web-based feature of Microsoft Office that lets people access their documents online and share their work with others. The new strategy departs from the company's current model of selling licenses for software that runs locally on computers, and takes it a little closer to competitor Google which offers online versions of its productivity applications suite Docs, which includes spreadsheet, word processor and presentation software.

Another competitor, Adobe Systems announced Monday that it has signed a definitive agreement to acquire Virtual Ubiquity in Waltham, Massachusetts and its online word processor, Buzzword.

Adobe also added a new file sharing service to its current online document services. Codenamed Share, the beta service will make it easier for people to share, publish and organize documents online, the company said.

Buzzword was built with Adobe Flex software and runs in the Adobe Flash Player....