While Google has offered a business version of its online office applications including email, word processing, and spreadsheets for a while now, Zoho has continued to offer its online office suite for free. Today, Zoho's business plan became a little more clear with the announcement of Zoho Business.

Zoho will continue to offer a complete suite of online applications for free, including a word processor, spreadsheet app, task manager, and calendar. These applications will be part of a package referred to as Zoho Personal. But Zoho Busines will add features including domain management, increased storage, online backup, and telephone support.

Zoho plans to charge $40 per year per user, which is about $10 per user cheaper than Google is charging. We'd hate to see this turn into a price war. Google's got deep enough pockets to undercut Zoho, but we think there's probably room for two online business suites. Especially since Zoho Office is targeted primarily at small businesses.

[via Zoli's Blog]