Schmidt starts off by announcing a presentation feature for Docs & Spreadsheets. John Battelle points out that this completes the Office suite, so he asks is it now a competitor to MS? Schmidt says no, because it doesn't have the same or all of MS Office's functionality. He says Google D&S is a collaborative, web 2.0 framework - very different to MS Office according to Schmidt. He talks about the transition to a web-based computing framework, which their product is a good example of (for R/WW readers, aka the Web Office!). John persists - nevertheless it is a competitor to MS, he says (to crowd applause). Schmidt persists with his line of not answering that question, saying that D&S will enable people to use productivity products on the web, which he says they will use for different reasons - such as sharing and collaborative features. Schmidt calls this a web 2.0 shift in thinking for productivity.

The talk shifts to DoubleClick. John says that DC was in the past seen by Google as the type of advertising (banners etc) that was oppositie to Google (CPC text links). So what's changed?  Schmidt says that Google has since decided to offer a full scale set of advertising - not just text ads. So they acquired YouTube, started doing TV and radio advertising, and more. Now Google is looking to offer a single way to do all types of advertising. Since 2004, he says DC has become more targeted and offers better support tools (for publishers etc). So he says combining this with Google's technology will make "the math work" for them, in terms of the $3B price they paid for it. He finishes by saying that Google's technology does the best job of targeting, so if you marry that with DC's people and tools, that's how they came up with the $3B price tag.