Microsofthas announced Office 365 for Government, its version of cloud productivity software. The specific government version of the suite released in July 2011 uses specific government-only encryption and storage to help soothe concerns about privacy and data security. Other than the government-level encrypted storage, Office 365 for Government is the same as regular Office 365, keeping Exchange, SharePoint, Lync, and the other Office web apps in the cloud, but giving the option of installing a desktop version of the Office 2010 suite as well.
