One of the things that has prevented some organizations from making the switch to G Suite is the fact that they still would need to maintain and/or purchase Microsoft Office licenses for most of their users.
However, Office licenses may only be needed for a few power users within an organization, as there are two ways that any user can open and edit Microsoft Word, Excel or PowerPoint files using Google Drive. “Power users” can include those who work with very large Excel spreadsheets or who rely on macros within certain Excel spreadsheets. It can also include those who need to exchange redlined Word documents with third parties.
There are two ways that G Suite users can edit Office files without the need for Office software.
1. Convert, Edit, Save Back
The first way is to convert a Word, Excel or PowerPoint file to its corresponding Docs, Sheets or Slides format. Converting a file will unlock a number of features within Google Apps, such as the ability to invite other G Suite or consumer Gmail users to collaboratively edit, comment or chat within the opened file.
After editing a file, a G Suite user may want to email the updated file to someone outside the organization who is using Office, but whose organization is not using G Suite.
After making edits, a user can simply save the file back to an Office format using File > Download as from the menu. Of course, saving to an Office format also applies to any file that was originally created in a Docs, Sheets or Slides format.
2. Open and Immediately Edit
The second way for a Go Suite user to edit a Word, Excel or PowerPoint file is to install a Chrome extension.
With this extension, an Office file can be edited without first having to convert it to a Google format. In edit mode, the Chrome address bar will begin with chrome-extension://:
Changes to the file will be automatically saved.
Keep in mind that all Go Suite users have their own instance of Google Drive. Google Drive can be used to store both native Google files (Docs, Sheets, Slides, Drawings, My Maps, etc.) and non-native files (Office files, images, PDFs, etc.)
Many non-native file types can be viewed in Google Drive. But only files with the following formats can be edited in Google Drive using the Chrome extension:
Office Files and Chromebook Users
The Chrome extension is installed on Chrome OS by default. That means that Chromebook and Chromebox users do not need to take any specific action.