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Kevin discusses how to collaborate on a Word document without needing to send attachments back and forth. He highlights the previous challenges with document versioning, where multiple edits lead to confusion, resulting in different versions of the same document. Now, with Microsoft Word, as well as Excel and PowerPoint, users can collaborate in real-time on a document stored in the cloud, eliminating the hassle of merging versions. Kevin plans to demonstrate the features that enable this seamless collaboration.