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. 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.'

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

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