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You don’t need to be connected to the Internet to use Office applications, such as Word, Excel, and PowerPoint, because the applications are fully installed on your computer.
Yes. Documents that you have created belong fully to you. You can choose to store them online on OneDrive or locally on your PC or Mac.
If you purchase an auto-renew subscription, your subscription starts when you complete your purchase. You can purchase auto-renew subscriptions from Office365.com, MicrosoftStore.com, iTunes®, and some other retailers. If you purchase a pre-paid subscription, your subscription starts when you activate your subscription and land on your My Account page. You can purchase pre-paid subscriptions from a retailer or reseller, or a Microsoft support agent.
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“The cloud” is a friendly way of describing web-based computing services that are hosted outside of your home or organization. When you use cloud-based services, your IT infrastructure resides off your property (off-premises), and is maintained by a third party (hosted), instead of residing on a server at your home or business (on-premises) that you maintain. With Office 365, for example, information storage, computation, and software are located and managed remotely on servers owned by Microsoft. Many services you use every day are a part of the cloud—everything from web-based email to mobile banking and online photo storage. Because this infrastructure is located online or “in the cloud,” you can access it virtually anywhere, from a PC, tablet, smartphone, or other device with an Internet connection.