Interesting survey hosted on the Register from the smart cookies at FreeForm Dynamics (check out their blog) which I only just read.  Well worth a look this.  Dale Vile concludes that Microsoft Office still rules and that Saas and Web 2.0 challengers are yet to threaten.

The first thing we learned from the poll was that Microsoft Office still rules the desktop when it comes to office suites, and basically there are no significant commercial challengers. The only competition at the moment is from open source office suites, OpenOffice in particular, which around one in five Reg readers are personally using.

The other big news from this chart is that online alternatives to desktop office suites delivered via the "software as a service" (SaaS) model are really nowhere at the moment in terms of penetration, at least for business use. With all the noise we hear about these types of services, this may come as a bit of a disappointment for SaaS and Web 2.0 advocates. Clearly, the tales that Google is already beginning to threaten Microsoft's desktop dominance are wildly exaggerated.

but the best bit for me is:

What we notice here is that open source office suites have not penetrated as much across the broader business user community, and indeed if we break this out by company size, we can see that even the leading open source solution, OpenOffice, is not really being used to any significant degree in medium sized and larger organisations, and has, in fact, already been outpaced by Microsoft's latest release, Office System 2007 in this space.