Zoho users with a Google username and password will be able to log directly into Zoho applications, according to Sridhar Vembu, founder and CEO of AdventNet, parent company of Zoho.
"Users won't need a separate Zoho account," he told me at the Web 2.0 Expo in San Francisco. The Google sign-on integration should be finished within two weeks, he said.
Vembu was impressed by Google's cooperation and willingness to work with a competitor. Zoho and Google Docs are both trying to replace Microsoft Office. Google has been willing to contribute code, such as OpenSocial, to the larger community.
Making it more convenient for Google users to work with Zoho applications indicates that Google is open to or supportive of technologies such as OpenID, or that it doesn't view Zoho as a threat. It's most likely a bit of both, and overall, it's good for their mutual users.