At the buzz-filled Web 2.0 conference, Google's (NASDAQ: GOOG) Eric Schmidt gave a presentation about, well, presentations.

Google is going to launch an online system to allow users to create PowerPoint-like slide shows. It will be part of the company's Docs & Spreadsheets suite.

Of course, Schmidt said he is not competing against Microsoft (NASDAQ: MSFT) (as he always likes to say).

I had a chance to interview Anders Heie, who is the founder and president of KaDonk. His company develops applications for Microsoft's Project franchise. According to him:

"I think most people would agree that PowerPoint is the de-facto application for presentations, and one of the best programs Microsoft has (that, and Excel). If Google only provides online support for its new software, the issues are the same as for its other offerings: No network equals no work. I would imagine that Google could get good traction if the software supports imports/exports to PowerPoint, but I doubt it will take any significant market share away from Microsoft for quite some time. The great thing about Google's offerings is the built-in ability to share between anyone, which totally blows Microsoft out of the water. Google needs to catch up on features, and Microsoft needs to find a way to share as easily as Google."

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.