"The entire State University of New York (700,000) use MS Office."

This is incorrect and I wish whatever source this comes from would get corrected.

Both Google Apps and Office 365 are made available to campuses through streamlined contracts signed at the system level. It is up to each campus to pick which one they want to use.

I'm on a campus that chose the Google offering. We got rid of local storage for student files on our LAN in favor of promoting cloud storage and have outsourced all student and alumni email to Gmail. We're not the only ones in the SUNY system.