Microsoft Corp. (MSFT) said it will offer a Web-based version of its Officeoperating system for free as the software giant looks to battle free Web-basedsoftware from Google Inc. (GOOG) and increased competition from open-sourceproducts.

Google recently announced it would turn its Chrome Internet browser into anoperating system, which co-founder Larry Page said was kind of an anti-operatingsystem - basically indistinguishable from a browser. The company said netbooksloaded with Chrome will boot up almost instantaneously and will store data onthe Internet instead of a hard drive.

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