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I was thinking local installs versus the hosted application but yeah, Office 365 behaving well with non-IE standards would open it up to other platforms.

Office is indeed on of the biggest cash cows they have but I think Balmer and the old boys club would have to be ousted before they'd get enough young blood to recognize the potential customer base on general purpose Linux based distributions. Right now they have a "cancer os" hostile management and strong motivation to keep Office primarily tied to the rest of the solutions they modern business has become addicted to. (and it is very much an addiction given the "withdrawl" of legacy documents, exchange data and user recognition; speaking as someone who keeps a "can my users switch to this" test rig updated.)