I worked on a Sun at NOAA in the 90s in Hawaii and the computer we used for bathymetry imaging was a Sun and the ships used Suns.
Most of that equipment was replaced with a little Linux and Windows Servers.
Latex still had it's place in academia, and would continue to dominate academic publishing for quite some time, but for 'ordinary' daily productivity needs first MacWrite and MacDraw, WordPerfect, Lotus 1-2-3, and later Word and Excel were becoming the staples.
With both software being ported to the PC/Mac platforms, and Linux starting to make inroads into the Unix compute workloads, Sun needed an answer fast to stop the bleeding.
Their inability to transform their high tough / high margin business model would do them in eventually as the commodity / thin margin model of the PC ecosystem grinded them into dust. But before that, they would try several things one of which was an attempt to 'complete' the offering of a single box solution which would have to include an 'office' package so as to keep the Mac / PC of the desks.
So the idea was you were the product, "sold" to the non-MS-Windows/Intel companies in te hopes of you being retained or transferred to a non-MS stack.
LibreOffice is post Oracle's acquisition of Sun, but the idea is still the same.