MS doesn't really have any choice but to offer office for free in the age of App Stores, and more importantly free alternatives are everywhere. Apple pages/numbers aren't going anywhere outside their garden, but Google docs are real deal. It's painful for MS to take this move, but it is really impressive to see them coming out of the comfort zone.
Clearly the strategy of MS is to expand their services across all platforms, and by eliminating differences between platforms, then they can rule again.
Interesting to see how this plays out in the next few years.
Late? They threw the party. Damn near a decade ago.
Microsoft didn't throw the first party and they didn't throw the party that mattered.
(1) https://www.wittenburg.co.uk/Entry.aspx?id=5d4b7d53-a77b-4fa...
On the devices side? Sure, Surface and Lumia are nowhere near as successful as the iPhone, iPad and Android. That was Microsoft coming late to the party. But come to the party they must. Before Windows Phone shareholders screamed for an iPhone competitor from Microsoft. After Windows Phone shareholders screamed for an iPad competitor from Microsoft. Windows Phone is good, and has some loyal fans. Windows 8 didn't do much for Surface, or Microsoft. Surface hardware is however also good, but new.
Ultimately the devices strategy strikes me as being sound - it's a platform to showcase the services side of Microsoft, and in time may be profitable to a point where the critics are satisfied.