After weeks of speculation and rumor, Google has officially launched a suite of online productivity and management software that directly competes against Microsoft Office, reports the Financial Times.

Dubbed Google Apps Premier Edition, the package contains hosted word-processing and spreadsheet programs as well as the email, calendar and instant messaging services avialable in the previous version, dubbed Google Apps for Your Domain.

The software is available to companies for just $50 per year per user, a far cry from Microsoft's expensive Office suite. That low price, though, comes with less functionality than Microsoft's Office. Still, the Google Apps package is expected to be attractive to small-business users and others looking for low-cost alternatives.

Microsoft's entry into the web-application market has begun, but its Office Live Premium service is expected to run almost $500 a year per user.