Google docs similar to Microsoft Office and their Office 365 on Skydrive, But this is googles version. Google Docs is free to use, although you only get 1gb of storage thats only for non google docs file formats. Example would be a pdf file for adobe. Microsoft word documents and documents created on google docs do not count toward the storage.
Google Docs Sharing: One of the nicest thing about google docs is that you can share your documents with others. You can even share whole folders or collections as they put it. With real time file editing multiple people can view and edit the same file. The nice thing is when your editing with multiple people it starts a chat session. so you can talk with everyone at the same time.
Storage: With google docs you get 1 gb for free. This storage limit only counts toward files that are not in google docs format. If you need more storage you can purchase more. When purchasing storage it is shared between all of your google services, Gmail, Picasa Web Albums, and Google Docs. You can purchase 20 gb for only 5.00 a year yep $5 a year, not a month. That’s enough to store 20000 photos from a 5MP camera.
Google Docs in Plain English: