It appears that Google will touch everything related to Web — as suggested in this article:
Sergey Brin: No office suiteâ€¦for now by ZDNet‘s Dan Farber — Google co-founder Sergey Brin made a guest appearance at the Web 2.0 conference. During his conversation, hosted by John Battelle, someone from the audience asked Brin about when a ‘Google Office,’ a web-based productivity suite, would appear. Brin responded: “I don’t really think that the thing is to take a previous generation of technology and port them […]
So this may be a good opportunity for entrepreneurs who want to develop a niche product and target Google as a potential customer. Of course, there is a risk if you start with the goal of selling it to a specific company. But if you build something that will be good and you want exit then if it is not Google then it will be Yahoo, Microsoft, or somebody else.