The final result will look like this:

Using the Text Tool, write the desired text for your logo using a nice serif font. This object will be used many times across this tutorial so we will need to keep a copy of it (here I used Copy and Paste in Place each time I needed it later).

Select the text, convert it to path and then break apart:


Here is the Break Apart result (zoomed in to get better accuracy in the next steps):

For the letters with holes in them select the interior and the exterior and apply Difference:


For the letters formed of multiple parts, select all pieces and apply Union:


The result look the same as the initial text but each letter is a different object:

Color the letters in vivid, rainbow color, just like the Google logo:

Bring a copy of the initial text and color it white:

Duplicate the text, move it a little down and to the right (I used a different color for the duplicate just to make the operation clearer):

Select the two copies and apply Difference:

Apply Blur to the result and reduce its opacity:

Here is the highlight area:

Bring again a copy of the initial text and make it black:

Duplicate the text, move it a little up and to the left:

Select the two copies and apply Difference:

Apply Blur and reduce the opacity:

And here is the dark area:

The text is a bit blurry, so a clip or mask operation is needed. Bring yet another copy of theinitial text and select all (the text, colored letters, lights and shadows):

Apply Cut:

And here is our 3D text:

Now zoom it back to the original size and enjoy the result:

For the last time bring a copy of the initial text, make it black:

Move it down and to the right and lower it under the rest of the logo:

Apply Blur and reduce the opacity:

And this is the final form:

If needed, add other elements of the logo:

Update: a

Many thanks to my friends at OpenArt.ro, www.xdrive.ro and Inovatika for motivating me to write this.a disclaimer will appear here soon