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Also, MS had already lost those sales of Windows, so it made sense to add office.

I guess the same would work for Linux, if MS was losing or already lost people from Windows, then making a Linux version of office could save them. But only if that situation ever happens. If they released it early, it could cause migrations away from Windows. Those that haven't moved up to Windows 8 might consider Linux as an alternative.

It might be smart for MS to secretly develop a linux version of office, and then just hold it in reserve just in case Linux starts to dominate.

MS usually takes the safe road, they rarely take risks (and usually give up too soon).