With Google and Microsoft already battling against each other in search, browsers and operating systems, the Microsoft Office 2010 software – which essentially is an increasingly mobile and cloud-based workplace - has further exacerbated their rivalry by challenging Google Docs.

While Google is leaving no stone unturned to push its Google Docs as the forerunner in the cloud computing arena, Microsoft is all set to move its ubiquitous Office suite into the cloud as well.

However, in a recent interview with Computerworld, the president of Google's enterprise division, Dave Girouard, said that Google is fully aware of the fact that since cloud computing is clearly a new game, new leaders will continue to surface.

Saying that Microsoft is a great company, Girouard added that Google is several years ahead of Microsoft with regard to its ability of developing and delivering reliable, useful and secure cloud services. In addition, Girouard noted that Google’s cloud-based editing is needs only a browser refresh, while Microsoft’s feature is rather complex.

Girouard further said that Docs is part of a larger strategy – it is one of the components of the larger suite that will only get radically bigger in the near future. Elaborating further, Girouard said that the last-week announcement that Google Apps will, later this year, have over 90 different applications like Picasa, Google Reader, will also bring a lot of new capabilities to Google Docs.