Microsoft Office... for rent

Sounds a little strange, but that's what's going down. This PC Week article details Microsoft's plans to offer MS Office applications online in a rental arrangement. Apparently a bunch of other companies (including Micron Electronics and Qwest Communications International) are going to be offering the service as well. Renters of the software (Did I mention that sounds strange?) will access it through "a terminal server that will emulate the Windows desktop." Assuming that means the Windows Terminal Server model, I'm somewhat curious about whether data files will be stored locally or on the same box. I would think the data would have to be stored online, but if it were I'd be concerned about security, backups, liability in the event of security breach or data loss, etc. I think I'll stick with my local copy.
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