"What you need for real-time automated machine translation is large amounts of compute power, which we have, and large amounts of data, which we have. Imagine a system that can do on-the-fly translation of things like e-mail, documents and IM chat. That's a feature you can see on the horizon," said Google's Matt Glotzbach.
Apparently, Google is also developing tools for videoconferencing "to augment internal training programs and to serve as a hosted alternative to pricey videoconferencing software". Last year, Google acquired Marratech's video conferencing software.
In the past few years, Google started to preannounce features and services, but they were either released late or not released at all. We're still waiting for phone calls in Google Talk, tasks in Google Calendar, Gmail folders, Knol, Google Health.