Yes, a group of people could invent workarounds such as using Dropbox and copy files to new names such as PetroleumContractVersion1.docx, PetroleumContractVersion2.docx, PetroleumContractVersion3.docx, etc. Other manual methods of sharing could be blasting email attachments back and forth and CC'ing collaborators. Those methods are tedious and error prone.
Another option is to install a SharePoint server and use its document sharing features. That's probably overkill and many folks would think the Sharepoint "cure" is worse than the disease.
Since many folks find GoogleDocs sharing feature to be useful, it seems logical that adding such capabilities to a desktop word processor would help many workflows.
[1]https://www.google.com/search?q=office+2016+collaboration
The Dropbox 'badge' as they call it adds a bit. It'll tell you who else is editing, let you comment/annotate, do 'automatic' versioning (i.e. not make you save versions manually), and share from within Word/Excel. It's about as much 'cloud' as you'd want. Maybe the realtime collaboration will work well, hard to tell. That would be a major selling point, if they manage to sync edits well.