With Microsoft Office Web Apps on Windows Live, you can view, edit, store, and share Office documents with others online for free. Office documents stored on Windows Live can be viewed and edited with either the Office Web Apps or with the Office client applications on your desktop.
Office Web Apps give you the freedom to work from almost anywhere. If you have an Internet connection, you can access, edit, and share documents easily and store them online with Windows Live, so they’re never be away than your computer. And with Office 2010, you can save your documents directly to the Web and open them just as easily.
Some of the screen shot of Office Web apps
How to get started with Office web apps

This what it looks like

User gets the access to MS Word, Excel, PowerPoint and one Note.
How to uses the Office web apps

You get your files where you need them, when you need them. Now that I have an easy way to save files directly to Sky Drive from Office.
Hotmail is expected to get OWA integration in a weeks time (June 15). It is also the day Microsoft will release the retail version of Office 2010 - which is currently in RTM.
For More information on Office Web apps - CLICK HERE
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