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Microsoft's online productivity suite will be available throughout the State University of New York education system, covering some 465,000 students.
Microsoft software-plus-services suite is headed to schools a little later this year, and at a discount from the company's version aimed at businesses.
Microsoft is fighting back at Google Apps with the launch of Office 365, a cloud-based version of its business software.
Software giant adds Office Web Apps to its bundle of hosted Exchange and SharePoint, and will offer traditional Office as a subscription service, renaming the broader product as Office 365.
The e-mail and communications server becomes the first of the 2010 wave of Office products to hit that milestone.
Microsoft has started beta testing of Exchange 2010, which includes conversation threading as well as the ability to ignore a particular discussion.
In a chat with Wall Street analysts, Microsoft CEO Steve Ballmer confirms that you'll have to wait until 2010 to get your hands on the next version of Office.