What probably scares MS as much as the giving away of iWork is that with iCloud you will - as demonstrated yesterday - be able to send anyone a document from iWork and they can open it up through iCloud. Don't have to be on a Mac or iPad. That means that those people who have occasional home use for word processing etc won't need Office365 any more and can just send something from their iPad or open it up at work and print there.
While the large corporates won't get rid of Office anytime soon, small business could use iWork (or indeed the Google equivalent) and maybe at most have a couple of copies of Office for heavy users.
What's more, the steady growth of iPad use means that home users will become less and less familiar with Office.
Office365 I think replaces MS Works, which got people familiar with Word in particular. Most home users will use Word for the odd CV, letter etc. Pages can do that and means that there is no need for an Office365 subscription at home, thus breaking down the link further.
MS are being squeezed by OSX, iOS and Chrome. Yesterday's announcement ratchets up the competition further. Surface (Pro) 2 can't afford to fail.
While the large corporates won't get rid of Office anytime soon, small business could use iWork (or indeed the Google equivalent) and maybe at most have a couple of copies of Office for heavy users.
What's more, the steady growth of iPad use means that home users will become less and less familiar with Office.
Office365 I think replaces MS Works, which got people familiar with Word in particular. Most home users will use Word for the odd CV, letter etc. Pages can do that and means that there is no need for an Office365 subscription at home, thus breaking down the link further.
MS are being squeezed by OSX, iOS and Chrome. Yesterday's announcement ratchets up the competition further. Surface (Pro) 2 can't afford to fail.