The iWork package is how office software should be done. Easy to use, pleasant to look at and intuitive this is exactly the kind of quality people expect from Apple. The package includes the Pages word processing application, Keynote presentation software and Numbers spreadsheet tool.
I'll start with the best part of the package, which is Keynote. Keynote was where iWork started and it's so much better than the alternatives. Making a presentation with something like Powerpoint is easy, but making a good looking presentation is hard. Keynote goes that bit further and making a professional looking presentation can be easily done by an amateur because of it's design. Aligning text and images is so much easier and better in Keynote, more font options are available too. Importing pdf files is done much better than Powerpoint (this is thanks to OS-X). The transitions and animations are much better than the competitors too. Keynote is well worth the money by itself.
Pages is another great application, it benefits from the same advantages as Keynote. Easy to use and easy to make great documents. I often find that Word really suffers with larger documents and with inserting graphs or pictures. Pages does this so much better and without frustration. The templates look great too.
Numbers is the final iWork application and is the part that still needs work. It has the same strengths as the other parts of iWork, but doesn't have quite as many programming options as Excel. I think that this will change as Numbers develops and for 99% of spreadsheet activities it's great (for more complex things you should be using a programming language anyway).
All 3 applications can work with MS Office documents fine and that's crucial for most people. The only reason I've given 4 stars rather than 5 is that I think Apple can do even more. The online collaboration will add more to iWork and further work on Numbers would push it to 5 I think.
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