First, here is the description of Microsoft Sync Framework:

Microsoft Sync Framework is a comprehensive synchronization platform that enables collaboration and offline scenarios for applications, services and devices. Developers can build sync ecosystems that integrate any application, any type of data, using any protocol over any network.

The Microsoft Sync Framework provides a platform for taking web services and databases offline. In addition, it provides optimized P2P sync of any type of file including contacts, music, videos, images and settings. The extensible framework includes built-in support for synchronizing relational databases, NTFS/FAT file systems, Simple Sharing Extensions for RSS/ATOM, devices and web services.

So Microsoft is now offering a tool like Google Gadgets, which can be used by others. Zoho, for example, uses Google Gadgets to support it online/offline word processor. (I'm not sure if any other Zoho apps use Google Gadgets yet). So Microsoft is responding to Google Apps, Zoho, ThinkFree and while we're at it lets throw in Zonbu and the other low cost Linux platforms that won't be running MS Office.

Meanwhile, Google is set to announce an open source mobile platform;

Google will announce an open source development platform for mobile applications that will contain a full set of components, including an operating system, a set of common APIs, a middleware layer, a customizable user interface and even a mobile browser, sources said. Instant messaging standard protocols will also be supported.

The platform is intended to simplify the process of creating and deploying mobile applications, so that an application can be built once and be compatible with multiple phones.

ComputerWorld goes on to speculate about Apple:

If Apple is absent from the partner list in Monday's announcement, it could signal that the company views the Google system as a negative development in the mobile market, an interesting situation, considering Google CEO Eric Schmidt sits on Apple's board.

Of course the release of a competing platform that enables comparable services to the iPhone is a negative for Apple but that isn't the reason for Google's move. They don't want to take on Apple, they want to tap into the revenue stream of the entire industry.

The iPhone is small fish to Google and Microsoft is again trying to play catch-up.

UPDATE: It's official, here is Google's explanation of their plan their mobile platform, called Android:

We see Android as an important part of our strategy of furthering Google's goal of providing access to information to users wherever they are. We recognize that many among the multitude of mobile users around the world do not and may never have an Android-based phone. Our goals must be independent of device or even platform. For this reason, Android will complement, but not replace, our longstanding mobile strategy of developing useful and compelling mobile services and driving adoption of these products through partnerships with handset manufacturers and mobile operators around the world.

The most telling part about Google's overall strategy is "Our goals must be independent of device or even platform", again, they are not gunning for the iPhone, they have much bigger plans.