They are cloud based. Not a problem for me I use Google Docs a lot. I'm impressed with the look and feel so far. A little concerned about usability. I clicked the share button and the only option I got was to email my creation as an attachment. I'm sure Apple will make it all work and nicely too. My next question is how much will they want for these apps? Apples not used to giving things away.
They might out class Google Docs, but it will be hard to get people to pay for something that they can get for free. No matter how well done.