Google's Docs and Sheets apps now can tap into third-party plug-ins, or apps, to better match up to Microsoft Office in terms of features.
At the CeBit trade show in Germany, a company official said there should be more news of the office suite in the second quarter.
Office Online and the addition of mobile apps are major improvements, but clunky controls hamper attempts to work together in real time.
The company is looking at digital ink, voice commands, gestures and immersive capabilities to play a big role in that Office edition.
No more working in isolation. Your colleagues and the entire wisdom of the web will be there for you when you need it.
Microsoft takes social elements from Yammer and merges them with the rest of Office 365, with a number of other enhancements that include Groups and API improvements.
Microsoft executives say that new "app experiences" will be added to its venerable Office suite, using OneNote as a past example.
Microsoft's Office Web Apps have a new name, a new site, and a new app bar.
Microsoft will open its SharePoint conference in Las Vegas by revealing updates to its Lync service as well as better communication between Lync and Skype.
DocuSign says it will bring its eSignature technology to Microsoft's Office 365 as an Office app.