quite a bold and brave move I would say and will be monitored by many others with great interest.
Our company has MS Office on all desktops. I would say 90% of the users only use perhaps 10% of the functionality (including myself). It is expensive (when you consider that most of the functionaility is never used) but is very reliable and an excellent profit.
£1.4 million over 5 years is a considerable saving, as long as the support/training costs can be kept down - but I imagine the user interface is not too different from MS.