Microsoft's spiritual and temporal ruler, Sir William Gates III said that Windows Live nor another similar online service called Windows Office would replace the stuff sold on disks.
However it will make applications more accessible for 28 million small business worldwide. In some cases it will offer enhancements to regular Office applications and some new services, which would normally be out of the price range of SMEs.
I am really, truly amazed that this has not happened before, but then again itís not been until now that the kinds of broadband speeds necessary to faciliate this have become available. Whether this will augment the user experience remains a mystery, though.