The Search Engine giant Google plans to release a web based spreadsheet service, reported today The Wall Street Journal. The new application will be available on a limited test basis. It came after the Search Engine acquired Writely, a company that offers online word processor services.

The Google’s word processing and spreadsheet web applications challenge Microsoft’s Office software programs Word and Excel, which dominated the market for two decades.

The release of the new web based applications is seen from many companies as a chance to compete Microsoft’s PC software. Microsoft however has been building out web services associated with its Office programs as a way to grab more money from internet advertising.

News can bee read at Google’s Blog.