Users are reporting that Outlook.com is down and also that Office 365, the cloud version of Office 2013 is unreachable. Microsoft is heavily betting on the cloud (Skydrive) with its new Office versions. By default they save documents to Microsoft’s Skydrive but it is still possible to save to the local drive. The Outlook service seems to be down since 07:22 PST and Microsoft confirms this on its status website.
For Office 365 the subscription service seems to be having problems and some users report they have a hard time using Office 365. Microsoft seems to be aware of the service disruption and trying to solve the issue. Unfortunately this is another case that underlines an important disadvantage of using a cloud service.