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They already have it.

When opensource version of cloud docs/sheets available. Then we will see AWS: X as a Service.

I don't think AWS tries to create any non trivial software.

Take open source software, slap AWS brand on it, and sell it through the ecosystem it has successfully created.

RDS, Document DB, Elastic, EMR and other countless services comes to mind.

Couldn't they do libreoffice as a service? Doesn't that already exist?

I doubt any one want to create an office suite, the last people who tried to do this was Salesforce (with quip buy) and it's now a niche product. No one has an integrated product like Office 365.

How is Apples iwork doing these days?