Don't forget security!
There is one VERY good reason why government departments, like my employer, can not, will not, and never will be able to use "cloud" services for their core business, and that is security. In most cases it would be strictly forbidden, for very good reasons, to host government documents, or those containing personal data, in some arbitrary cloud controlled by an entity not subject to either UK Data Protection Law or UK national security regulations. So the cloud, as an alternative to keep M$ in the game, is just not going to happen.
No, this really is VERY good for free and open document formats which are controlled by legitimately obtained ISO standards, and are actively supported by multiple vendors, but very bad for M$.