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Beware that all cloud storage services are keen to get you to pay ever-increasing costs
QI’ve just upgraded my iMac to Sierra, and see that I have the opportunity to store my files on iCloud Drive. Most of my work is done in Microsoft Word, for which I have a OneDrive subscription so that I can share those documents with my iPad and iPhone. Does this mean that I can now use Word on my iPad with iCloud Drive instead?
AYes, but you’ll still need an Office 365 subscription. Opening a document from iCloud Drive is slightly less direct: tap More at the bottom of the list of locations, and you'll be offered your iCloud Drive, and any other cloud storage that you’ve added to Word's list of locations.
To save a document from your iPad to iCloud Drive, use Save a Copy, then tap the More item in the list of locations to see your folders on iCloud Drive. You may find it helpful to create folders for Word and other Office docs on iCloud Drive, but that isn’t required.
If you currently pay for additional storage above the 5GB that comes free with an Office 365 subscription and the 5GB that’s free with your iCloud account (shared by all its services, not just iCloud Drive), you can now consolidate in iCloud and perhaps get better value.
Beware that all cloud storage services are keen to get you to use more space, and to pay ever-increasing subscription prices. In Sierra, be very careful with the Optimize Storage feature; the option to move your Desktop and Documents folders to iCloud Drive can rapidly fill all the online storage you give it; files you haven’t touched on your Mac for a while are pushed to the cloud until you need them.
Provided you have an Office 365 subscription, the iOS apps in Microsoft’s suite can open and save to iCloud Drive.