graeme_p - 8:38 pm on Dec 9, 2012 (gmt 0)
I think, either:
1) The ratio of free users was too high, or,
2) It was always the plan to charge: it was free to get it established.
So now Google is making money from an office suite (its on their servers, but does the same), while MS is making money from search? Neither is making much, but threats are good for both of them (from users POV!).