Office Everywhere - Short term loss, long term gain
Office isn't as popular as it used to be. Microsoft will find it hard to compete with all the free alternatives to Microsoft Office on Android, iOS, MacOS and even Windows. With the use of software that Microsoft does not make, things can change without their input. My solution: Office Everywhere.
Office Online is good enough for a lot of people. I propose that Office Online is free for Windows (both Windows Store and Desktop), Windows Phone, Android, iOS and MacOS. As Office is a big revenue stream for Microsoft that could be detrimental for business, but if people stop using Office because it is too expensive, that's also a loss for Microsoft. Office Everywhere has the feature set of Office Online currently, on all OSes, for free.
This whole idea is to keep people making .docx, .xlsx and .pptx documents, which will hopefully spur businesses in continuing to use Office (as Everywhere wouldn't be available for businesses). Microsoft Office is very expensive, however, and could be seen as detrimental to the revenue that Microsoft gets.
Different features can be rented from the Office Store. There would be 24 hour, 1 week, 1 month and 1 year renting options for a feature not supported, such as full image editing, shapes, SmartArt etc. There will be support for 3rd party services like with the Office available now, but they are meant to add to and not replace features that Microsoft makes available for consumers to purchase directly. The current Windows gift card would be available to customers to spend in the Office Store. Word, Excel and PowerPoint would be able to view most things that can be created in full Office, but will not be able to interact with most of it. When you rent a feature, it is available on all tablet and larger devices, and most features on phones.
If someone requires many of the Office features (such that it is more than Office 365 yearly) or doesn't like the restrictive nature, then this is where users will get Office 365 or Home Premium. This will help those users that don't really need Office to continue to use it, and not alternatives such as Google Docs, iWork and those that need only a few features to continue to pay when it is needed.
It would be required that the user signs into their Microsoft account to use the service. Each user would be able to use it on 3 devices for free (such that a user could install the Windows Store version and Desktop version with it only counting as one), and a fee per device after that. Windows RT and Windows Phone will be exempt from being included in that count, but Windows RT would no longer have Office 2013 and rather Office Everywhere (it would be available to people that want to pay a discounted price for it). So you could use it on your Windows Desktop, Windows laptop and iPad, or Mac, Android phone and tablet.
What do you think? I'm open to any feedback.