Microsoft has announced that it is to run a sweepstake for US beta testers of its new web-based document storage software package, with a $100,000 (£50,000) prize on offer.

The computer giant is running the competition to generate a high-level of interest around its Office Live Workplace offering, which is a free service aimed primarily at individual users and small businesses.

Microsoft rival, Google, is also launching a similar product called Google Docs, which is still in its beta testing stages.

Guy Gilbert, a senior product manager at Microsoft, was asked how his firm's service would compare to its rival's.

He replied without directly mentioning the search engine giant: "Of course, we rate ourselves very well. But we're well aware that customers are asking us to do more. So the service will continue to progress."

Microsoft describes Office Live Workplace as an "online extension" of Office, that has been integrated with the XP, 2003 and 2007 versions.

All members of the public are welcome to sign-up and try out the service, although it is only US residents who are least 18-years-old that are eligible for the big prize money.

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