Microsoft changed the name of Office Web Apps to Office online, and will be a completely free service where you can create edit and manipulate your Office documents like Word Documents, PowerPoint presentations, Excel spread sheet etc.
You can save the files to OneDrive (Can sync it with your devices running almost all platforms like Windows, Android, Mac, iOS etc), or can download the file.
The files will be saved automatically to the OneDrive, so you will not have to save it every time you make a change to it. Another interesting feature is Real-time co-authoring, it will allow many users to edit a single document at the same time.
The online service is also having hundreds of templates for the Word, Excel and PowerPoint
You will need to have a Microsoft account,
Today we are making two changes. First, we’re renaming Office Web Apps to Office Online so you know where to find our free online experience. We heard from customers that the inclusion of Apps in our name was confusing. Are they something I install? Do I go to an app store to get them? No, to use them all you need is a web browser. Ah! You say. So it’s like Office, online. Yes, exactly. Office Online.