This is the first time I've had a look at Google Docs and Zoho. I knew about the Google products, but I'd never had a reason to use them. I think they are useful for libraries who want to collaborate on grants or work with external groups. It's also means that you don't have to worry about incompatible software.
What I really like about both Google Docs and Zoho is that there is an offline function where you can edit your documents offline. This is handy for use at home where you can't always sit on the internet for hours.