*six more months later*
"Sir, they came back."
"Yawn. Shall we raise price again?"

The value with MS Office comes from being able to create formatted documents that can be easily read by other people you might email them to. MS Office's file formats have become the defacto standard over the years. This is primarily due to business and education adopting MS Office as the standard programs everyone in the facility or institution was directed to use.
If you don't use highly formatted text or complex spreadsheets, you can switch to Google Docs, Apple's iWorks, or some of the other programs on the market that allow you to save in Microsoft's Word or Excel formats thereby being able to exchange readable documents with anyone else you may desire.
The pricing changes MS is now instituting may cause many of their customers to change their internal standards to other creation programs. The timing of this move by Microsoft is not a good one, their market clout is currently at a low.

I'm thinking that Apple may be working on something that may allow them to make iWorks more powerful and cross-platform. At least I hope they are.
With their current successes into Microsoft's old solid markets with their iDevices and Macs, they could lure Microsoft's old Office customers to adopt a new standard for all but a few power users.
Microsoft is not choosing a strong time to push their weight around on pricing.

I have been using Pages/Numbers/Keynote since 2008 (almost) exclusively. I consider myself a sophisticated user and have never come across a time where iWork couldn't do what I needed to do. OK, maybe if iWork had better equation support, that'd be nice, but I am really at a loss what more I want it do to.
I sometimes have to work with Office 2013 and it's not a pretty affair. The whole ribbon interface is a disaster. Granted, one could make beautiful documents in MS Word or Pages or even ClarisWorks, but I will argue its whole alot more pleasant and easier with Pages.
Isnt it amusing what type of documents 90% of consumers make with Word? ALL CAPS with whole spacing between lines with the odd clipart. That may be an exageration, but you know what I mean. Man, people have no sense of typography, style, spacing, ..... I better stop this rant before I go on. :)
You sound like 90% of the people that use computers to draft a document or create a spreadsheet. You don't need the full set of MS Office functions, as do most people. I consider myself a "power user" of MS Office, and yet I've never had to create a calculus equation in a document, have Word make up a table of contents, or any of the hundreds of other things MS Office can do. In fact. MS Office is best used by a university student or professor doing post-graduate work.
I have found that when I begin to use some of the more sophisticated features in MS Office on my Mac is when the program becomes very wonky and most often is likely to crash suddenly. So, even I could likely function quite well with Pages, and maybe even Numbers. Keynote is already a much better program then the Office equivalent, PowerPoint.

The value with MS Office comes from being able to create formatted documents that can be easily read by other people you might email them to. MS Office's file formats have become the defacto standard over the years. This is primarily due to business and education adopting MS Office as the standard programs everyone in the facility or institution was directed to use.
If you don't use highly formatted text or complex spreadsheets, you can switch to Google Docs, Apple's iWorks, or some of the other programs on the market that allow you to save in Microsoft's Word or Excel formats thereby being able to exchange readable documents with anyone else you may desire.
The pricing changes MS is now instituting may cause many of their customers to change their internal standards to other creation programs. The timing of this move by Microsoft is not a good one, their market clout is currently at a low.
Thank you. I was honestly asking.

2013 for Windows and 2011 for Mac can still be had for $9.95 from http://www.microsofthup.com if you are fortunate enough to work for a company that participates in this program.
That site really helps show Microsoft's strategy. Try to keep businesses on Windows by providing all new software offers on Windows only. Hell, they only added Outlook in 2011 as Mac's were stuck with Entourage (load of crap).
My company licenses office for everyone, but since they went to the latest Exchange server version, I happily use Mail and Calendar instead of Outlook. I use iWork for just about everything I need and just save files to Office formats if people need editable copies. Otherwise I just send PDFs anyway.
I really hope Microsoft continues the missteps. The worst software on my Mac is from Microsoft.

I have no idea on whether licensing would work or not for MS, but as someone with Pages and Word on my Office machine I try to use Pages and end up using Word. Just last week I found that inserting a page break will not insert the break for added images. And the adding of images is a mess anyway. Text flow is random.Numbering in Pages is a mess.
Word acts as you would expect.
Hey...
Bill? Since when is Bill a better CEO than Ballmer? Bill was going to completely destroy MS (antitrust, stupid strategies).
Ballmer took that POS that was windows 98 and XP and made windows 7. Windows 7 innovated 0, but was very fast, stable and secure, and doesn't looks like an ugly fat pig. A much better OS than anything Microsoft did before.
These new Lumia 920 are great phones, Bill was 0 at mobile.
Xbox's success belongs more to Ballmer than to Bill.
Office is the same shit, with better looks.
Bing is solid.
Microsoft is now a good company that can take care of their costumers. No privacy scandals there. See? Ballmer took a big empire that was going to implode and was able to create good products and a good company, while providing some laughs.
Bill is not better than Ballmer as CEO. He is just ruthless and cruel, able to easily play and manipulate lesser minds while playing the "sucker" game. He was forced to step down.

The value with MS Office comes from being able to create formatted documents that can be easily read by other people you might email them to. MS Office's file formats have become the defacto standard over the years. This is primarily due to business and education adopting MS Office as the standard programs everyone in the facility or institution was directed to use.
If you don't use highly formatted text or complex spreadsheets, you can switch to Google Docs, Apple's iWorks, or some of the other programs on the market that allow you to save in Microsoft's Word or Excel formats thereby being able to exchange readable documents with anyone else you may desire.
The pricing changes MS is now instituting may cause many of their customers to change their internal standards to other creation programs. The timing of this move by Microsoft is not a good one, their market clout is currently at a low.
The trouble with MS Office is people think it represents some sort of standard. Send a document to someone with a different OS or different fonts, and the layout goes bananas. PDF is far preferable for this purpose, and recent PDF viewers allow annotations. For collaborative documents, Google Docs, despite limitations on formatting, is far preferable because you can work collectively on one document, rather than sending copies around by email and ending up with multiple version confusion.
For nontrivial documents I use LaTeX (I’ve even written novels this way: look for me at Amazon). I used Word up to about 1996 for relatively complex documents when its propensity for eating files, doing weird stuff with figure placement and the random way working features were changed in new versions, often for the worse, convinced me they were working to the interests of someone other than me. I still use MS Word because I have to open other people’s docs, but otherwise try to avoid it.
LaTeX, for the uninitiated, can be intimidating but once you learn the basics, it’s not that hard — doing tables is a bit tricky, but most can steer clear of the more complex features.
Philip Machanick creator of Opinionations and Green Grahamstown
Department of Computer Science, Rhodes University, South Africa
Philip Machanick creator of Opinionations and Green Grahamstown
Department of Computer Science, Rhodes University, South Africa
I was at a meeting the other day with Pages open and someone saw my document and he asked, "How do you make such amazing documents?"
Again, truth be told, you can do the same thing with any modern layout program. It's just a sense of design. Most people would survive if they only had the features of MacWrite 1.0 because they make such simplistic documents.The thing I hate about Microsoft Word is how is tries to help me so much with so many features. I swear to god it tries to force formatting or will not let me do this or that because automatic features kick in.
I am at a loss over any grand features Pages is missing. I have produced thousands of documents with it from simplistic ones to 100 page reports containing everything you can imagine. As long as Apple keeps it working with the current OSXs and keeps it fast and responsive, I will be happy.
Maybe we should be glad there isnt feature creep like in Word. More isnt always better — just get me better equation support :)
Call me crazy but I really don't want Apple to make iWork a direct competitor to Office as it seems so many others do. I like its simplicity and ease of use. All the professional whiz bang features that some are clamoring for would go unused by me and I suspect most of the general population.
If Apple really wants to compete with Office, a new professional grade suite should be created. They could call it iWork Pro. This way those who wanted a more basic (and cheap) package would have that option and those who needed more would be covered as well.
Making iWork try to be all things for all people will only wind up pleasing no one. Hmmm, just like Office now.
Just went to the Office 365 website, it told me my browser (Chrome Beta) is outdated, and I should install the latest Internet Explorer (never mind that I'm on Linux).
Microsoft is going to be completely irrelevant in a few years. Apple broke their desktop dominance, iOS and Android ended PC dominance in general, and Linux is ending their server dominance. Web apps are the future, and Microsoft sucks at them. They also suck at pricing, and a number of other things too.
The business version of Google Apps is $5 per month, and has some cool features, works flawlessly across devices, and while not as full featured as Office, is more than full featured enough (unless you actually like using Excel as a programming platform). LibreOffice is enough for those afraid of the cloud, and I'm sure iWork is more than adequate for most things. PDFs are for sharing. Microsoft is for those who like frustration...