The Starter Edition is a slimed down version of Office with just Word and Excel offered. In addition, users will be forced to watch advertisements at some point while using the software.
APC points out that offering one of Microsoft's most popular and profitable software suites for free might sound like a risky, but it is possible to see the company's rationale.
As the Starter Edition software won't offer full program functionality it's likely many users will upgrade to a paid version of the suite at some point (and there's always advertising revenue to earn).

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