Using Google for enterprise documents such as proposals, contracts and budgets "is a stretch -- at least in the next several years," said Webster, because Google hasn't created a software-as-a-service business yet, and therefore doesn't have any protections in place for enterprise data and doesn't have guarantees of service levels and the like.

Some startups, such as iNetOffice, are hoping to sell word processing applications to larger software-as-a-service vendors for bundling within their own applications, according to iNetOffice President Tom Snyder.

But with a market that analysts say is ripe for consolidation, most startups are taking the usual route of frantically building up their technology and wooing end users to make themselves attractive to potential buyers.

In addition to buying up companies, Webster believes larger Web players will also build connectors between search engines and Web applications for an enriched experience. "For example, I can see Google Spreadsheets being very useful in the context of a search like 'find me the best rates for my ZIP code and my loan amount for a 30-year fixed mortgage,' then being able to do some 'What ifs?' using a prepopulated spreadsheet," she said.

Doing that also creates another medium for Google to deliver contextual advertising, Webster said.