On Monday, when Microsoft is expected to unwrap the next version of Office at a press event headlined by CEO Steve Ballmer, it will become clearer whether the company is propelling the suite forward for continued success or setting it up for failure.

The impact of the latter on Microsoft as a whole would be catastrophic, since the ubiquitous suite of productivity applications is one the biggest profit engines for the company.

To beat back competitors like Google Apps, Office must evolve into an easier to use, tablet- and smartphone-friendly product, and one that doesn't penalize customers who access it via the cloud with big feature gaps and complicated setups.

Specifically, Microsoft must overcome its reticence to make an Office version for iPads and Android tablets. And it must beef up Office 365, its year-old cloud suite that includes online versions of Office, Lync, SharePoint and Exchange.

These aren't easy moves for Microsoft, in part because they risk affecting the sales and margins of what has been a cash cow product.