Google Office In The Works?

Just hours after screenshot leaks of what appears to be Google Calender, rumors began to circulate about Google possibly buying up Writely. All this begins to make one wonder, is Google setting up an office suite? The leak of information about GDrive, Google's idea of "infinite storage", becomes more clear if this is true. GDrive would provide the platform to store applications and files usually found on your desktop. As most rumors are based on crumbs of truth seen through a distorted window, this addition to interesting information about Google's future plans will be observed with a close eye.

More on Google-Writely rumor

Update:
Well, this rumor turned out to be true. Google has aquired Writely.
Check out what else is being said over at the Official Google Blog as well as the Writely Blog.
The plot thickens...