Video: Google Docs vs Google Drive

Google Docs is a free, Web-based office suite, and data storage service. Documents, spreadsheets, presentations can be created with Google Docs, imported through the web interface, or sent via email. Documents can be saved to a user's local computer in a variety of formats. Google Docs serves as a collaborative tool for editing amongst in real time. If you are looking for self-hosted open-source Google Docs alternative, pay attention to ONLYOFFICE.
Online file storage and syncing service working as a file system for other Google's services. Allows to sync files between all your computers and mobile devices or collaborate on files with your team and partners. Version control, OCR, powerful online viewer. Provides 5 GB free disk space. Google Drive free alternatives are: OneDrive, Box, Dropbox
Face to face in the news:

2010 - GDrive is now officially Google Docs to defeate Google Docs

The soap opera about fabled GDrive (Google's online storage service) is finally over. As we expected, Google will not create a separate service. Instead, Google Docs allow now to upload any files and use them for online collaboration. Each account provides 1Gb free of charge. Additional memory can be purchased for $ 0.25/Gb per year. Google Apps users can purchase additional 5GB for $17 per year. Maximum file size is 250 MB. Many file types can be viewed online using Google Viewer (unfortunately, video is not supported). In addition, Google opened the Google Documents List API, which allows third-party applications to synchronize files with Google Docs or use it as an online file storage. There are already 3 useful applications using this API:

- Memeo Connect - desktop client that syncs files across multiple computers using Google Docs
- Syncplicity - allows you to create online backups using Google Docs.
- Manymoon - online project management system that uses Google Docs to store project files