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You can thus use your Office and your files on, for example, a cybercafé or library PC (though this doesn't work on Macs). Third, if you are away from your PC, you can use Office on Demand, which 'streams' the program online, without installing it. Second, it includes an extra 20GB of SkyDrive storage. First, you can use it on five separate devices, so you can register it on a desktop, a couple of laptops, a tablet and even a Mac (except for OneNote).

Office 365 Home Premium provides all the programs in Microsoft Office Professional 2013, but has a few other advantages as well. It is compatible with Internet Explorer 9 and 10, and uses DirectX 10 for fast graphics.

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Office 365 works with Windows 7, Windows 8, and Mac OS X 10.6 or later, but not with Windows XP or Vista, which are on death row. Steve Ballmer unveils the latest version of Microsoft Office 365 in 2013. Business versions use SharePoint Server instead of SkyDrive, but it's still called SkyDrive. It will therefore offer you a free trial of Office 365, which comes in different versions for home users (one to five devices), small businesses (one to 10 employees), mid-sized businesses (10-250 employees) and enterprises. However, Microsoft would much rather you didn't buy them, but rented its Office service. Office 365 serviceĪll of these versions will last forever. Above that comes Office Professional 2013, which adds Microsoft Publisher and the Access database (£389.99 or $399.99).

If you need Outlook for its contacts, calendar, task lists and other features, you will have to pay much more for Microsoft Office Home & Business 2013 (£219.99 or $219.99). You don't need Outlook for email because you can use online and/or the free email program from the Windows Essentials suite, which Microsoft has designed for home users. This provides the four core programs - Word, Excel, PowerPoint, and OneNote - for non-commercial use, but not Outlook, which is a business program.

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If you want to run the full Office programs offline, on your own PC, the cheapest option is Microsoft Office Home & Student 2013 (£109.99 or $139.99). They are better than Google's offerings, and - probably more important - they don't mangle complex Office files. The Office web apps do not have all the features of the full Office programs, but unless you're running a business, they have enough features for most purposes. Office files are now saved to SkyDrive by default, but you can download them to a local PC, or to multiple devices, or share them with other people. Log on, click SkyDrive, and you can create and edit files in the four main Office programs: Word, Excel, PowerPoint, and OneNote.

( has replaced Hotmail, so you can use a Hotmail address, if you already have one.) Sign up for an email address at, and you get free web-based email, a contacts book (People), a calendar, and 7GB of online storage in SkyDrive. The good news is that under the new system, most home users don't need to pay anything for Microsoft Office: they can use the free, cloud-based service in the form of Microsoft Office web apps.

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Entering the code online enables you to download your copy of Office, or activate a free trial version pre-installed on your new PC. Under the new system, you buy a Product Key, which is 25 alphanumeric characters long. Under the old system, you could buy a copy of Microsoft Office on DVD, and use it without an internet connection. As chief executive Steve Ballmer said last year, this 'impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses.'

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However, other things have changed now that Microsoft is not a software company but a cloud-based 'devices and services company'.