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Google docs is a relatively minor example of cloud computing (despite its pervasiveness), and that it is free is quite irrelevant and points more to the commoditisation of office productivity tools than it does to the typical business model for UI based cloud hosted tools. Most of the...

Free is not always better. I do have quite a few free utilities that I use every day, but I will gladly pay for software that makes my life easier - and I regularly do.