Google has announced an update to Google Docs and Spreadsheets that includes improved features and support for folders.
Google Docs and Spreadsheets now has an overhaul including “new icons, more content, and better organizational controls”. Searching documents in the service has been improved; dynamically filtered results from documents are listed as a user types.
Adding folders are the biggest change. Although, Google has not abandoned tagging. Giving you the best of both worlds.

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