Google Wave is an online collaboration tool that allows users to communicate and collaborate in real time. It will be previewed starting today to more than 100,000 developers and users who have signed up to try Wave and give Google feedback on how well it works.

Wave is a platform, which is a series of services, on top of which developers can create applications that supplement it. Google has been working hard to engage outside software developers to write applications that will run on Wave, creating services that will lure users and provide a potential source of revenue.

Ribbit, a company in Silicon Valley has written a conference gadget for Wave participants to escalate an online collaboration session to a real-time audio communications session, allowing participants to talk with each other while collaborating. I think this is very useful especially in conference call situations where you need an agenda or you need to see documentation on a particular subject. I have been on multiple conference calls where people ask “have you received that document that I emailed you prior to the call?”

Now participants can collaborate while reviewing the document and making suggestions/changes in real-time.

Of course Wave comes with its challenges. It is not fully compatitble with Microsoft’s Internet Explorer because it uses the latest HTML stadard which IE doesn’t support and users must install a google chrome frame (basically a browser inside a browser) to get the maximum benefit of the web application. Google says Wave runs just fine on Apple’s Safari 4 browser, Mozilla Foundation’s new Firefox 3.5 browser, and of course, on its Chrome browser. The Chrome frame, Google says, will be invisible to Internet Explorer users but will greatly improve the performance of a Microsoft browser. Microsoft, however, is warning users not to install the Chrome frame because of security concerns.

Ronald Gruia, an analyst who follows emerging telecom trends for Frost & Sullivan, said Google’s play is probably much broader than getting people to try its browser.

If Wave helps introduce users to other Google software that resides online — Google docs competes with Microsoft Office products like Word and Excel, while Google calendar competes with Microsoft’s Outlook — it could indirectly bolster the value of Google’s advertising, the company’s primary source of revenue.

What is Google Wave?

Google bills its new communication software as one part document and one part conversation. Friends or colleagues can work simultaneously on a task “”planning a trip, charting a business strategy “” wrapping in multiple facets of the Web, including e-mail, digital maps, video, photos and even voice communication. A demonstration is available at wave.google.com.