It's a place to store your documents and files online. You can upload individual files or a batch of files into "workspacess", which act like folders where you can separate documents by topic.
You can share an entire workspace or just individual documents with friends or coworkers, giving them rights to view or edit the documents.
The service does not offer on-line editors. You still need to use the original tool to make changes - be it Microsoft's own Office suite or something else. You can still see a read-only version online, and check a history of changes.
The cool thing of using Microsoft Office though is that you can install a plug-in that will allow you to open and save files to your workspaces directly from the applications.
Of course if you want to store files - not only documents - then I'd recommend SkyDrive instead, which gives you 5 GB of online storage. But I would still like to be able to mount SkyDrive storage as a drive letter on Windows PCs.
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Are we seeing the death of Windows RT?
Windows 8 Consumer Preview
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