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Foley is a thorough Microsoft beat reporter. She's generally quite accurate.
She's basing her report on a roadmap for Office, which she got from a source.
Office has long been rumored to be coming to the iPhone and
Roadmaps can change, so it's possible we see Office sooner.
For Microsoft's sake, we hope so. We can't think of a single good reason Office isn't already on the iPad.
Microsoft is missing out on the rise of tablet computing. People aren't buying the Microsoft Surface. They are buying iPads, and some Android tablets.
These people are probably annoyed that they can't use Microsoft Word, but they're figuring out alternatives. And it's not stopping them from skipping Windows-based PCs.