I think it's an interesting idea and I'd be curious to see if it works. Looks like Microsoft is betting via their OEMs that by giving away Office 2010 that is limited in functionality, but stuffed with ads, by bundling with new PCs and laptops would drive users to purchase the full version better than a full install of Office with a 60-day license. It all depends on how and when the ads appear. For example, if every output document, presentation or spreadsheet has an ad or watermark on it, then it would basically be a for-personal use only type of software as no one would want an ad popping up during a business meeting or demonstration as this would be like a banner across the forehead that says, "Hey, I'm too cheap to purchase the full version of Office 2010."
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