Microsoft Office 'lite' for the Web in the works?

Web 2.0 explorer Richard MacManus rounds up info about Microsoft leaping into hosted applications, with SharePoint, CRM and ERP (Dynamics?) applications, in his recent post. But will that extend to Microsoft Office, he asks? A Web-based Office in the cloud might not be the same as an enterprise-class Office. Dealing with workflow, access management across corporate documents, policy enforcement, compliance, etc. all require a lot of fast disk access. Hosted MS apps will integrate with disk-bound Office 12. Maybe a future Office will use a hybrid, browser-based approach or be a MS Office lite.  We might find out on Tuesday. I'll be at the event where Bill Gates and Ray Ozzie will "discuss Microsoft's vision and future direction and preview upcoming technologies from Microsoft."