> It's purely momentum that keeps MS Office entrenched in this area.
First, in the legal sector, anything "cloud" is a total no-go. Handing confidential legal documents over to a third party creates a rats nest of privilege issues.
Second, many businesses don't depend on Word's track changes. There are tools for doing version control and diff-ing on Word documents. We e-mail around diffs (redlines) just like how the Linux kernel was managed back before git. What's missing is a "patch" replacement--hence handing markups to secretaries.
Third, Word compatibility is a huge advantage. Legal documents don't need anything too fancy (that said, Google Docs is extremely primitive so I'm not sure it can even handle everything legal documents need, particularly in the area of footnoting), but at the same time law firms have built up huge bodies of templates and precedent in Word format. Having to round-trip through Google docs to copy some language or a citation from precedent would be a huge pain in the ass. Also, there are lots of little plugins, macros, etc, that we use. Westlaw integration, for example, custom macros for generating boiler-plate, etc.
Fourth, clients all use Word, and they all send redlines around too. You hand Goldman Sachs a Google Doc link, and they'd be like "what is this shit?" Big companies have exactly the same set of things tying them to word. Goldman has worked on a billion different prospectus statements before, and they're all in Word format. So you have to have Word and all those tools around anyway for documents coming in and going out.
Fifth, Google Docs sucks. It's the only Office Suite that's even more awkward and finicky than MS Office, and that's saying a lot. I hate using it for the most basic things--I'd hate to have to use it at work. Word processing has been pretty much downhill since Word Perfect 6.x, but it's really hit a new low with Google Docs.