Microsoft and Facebook are working together to fight a common enemy.
Docs.com is an online version of Microsoft’s Office software. When you’re working on a Doc with someone, you’ll be able to share documents on Facebook with your friends.
Smart move from Microsoft. Google’s online answer to Office, while still tiny, poses a big threat.
Microsoft is in a tricky spot here. This product is aimed at consumers, so if it takes off, Docs.com could cannibalize its own Office sales. (Office is a HUGE source of revenue and profits for Microsoft.) But, if Microsoft does not introduce its own online product, it will just watch Google cannibalize its sales.
So, Microsoft should be building its own online word processor and spreadsheet applications. It can try to monetize them as it goes, and hope it doesn’t cost it too many Microsoft Office sales.