The eWeek article: Rumors of Sun-Google Hosted Desktop Suite Quashed, offers a look at the constant (the article users the word "rampant") specultation about a Sun-Google hosted desktop productivity suite and common operating system, "is way off base."
From the article:
Insiders with knowledge of the joint plans to promote and enhance the OpenOffice.org desktop productivity suite say it is far more likely that Sun and Google will find ways to promote both OpenOffice.org and Google Toolbar, including having Toolbar included as part of OpenOffice.org, StarOffice, and even OpenSolaris and Sun's branded Solaris products...John Loiacono, executive vice president for software at Sun, has said that possible future collaboration projects under discussion with Google include work on OpenOffice. org, as well as cooperative arrangements in which each company will point its customers to the other's technology. "This is just Phase 1 of a multiphase approach," he told eWEEK.
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