Whether MS likes it or not, iOS is the dominant mobile OS with business. And the iPad is the standard all other tablets strive to be. I don't need or want limited function Office. I want full featured Office, and have no problem paying for it either.
That's exactly the reason why they will cripple the version for iOS, even with the subscription. I would do the same thing if I wanted my tablet to gain traction in the business market.
I really hope Apple will develop their iWork apps further and make them more usable to be competitors to Office, because MS might be behind a few years in App store size and tablet sales, but the business market is a massive factor in playing catch-up.
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Office is the only thing MS has going for it and its only chance to be at the table in the post-PC era. Shame they haven't quite realised that yet
They have. They will offer it on the Surface. The soon major competitor to the iPad. Microsoft is being smart. They don't want all these iPad owners to download Office and be happy. They want iPad owners to sell those things and buy Surface tablets with Office pre-installed. More money for MS...