Microsoft Office 365 was down for few hours and I was not able to access my account over there. Do you have any update about the reason for the outage. As i am able to access my account right now but I am bit afraid that Office 365 may go down in future as well. Should I continue with Office 365 or should consider offline office products only?
Office 365 outage on Sep 9, 2011 was because of "DNS issue". You can read more about the issue on this page http://goo.gl/EG5SL (Ars Technica Article). The same day, Google Docs, Hotmail and Skydrive were also not opening and the same reply came from Google as well for the outage.
As these services are cloud based and you may see this kind of outage in future as well. But at the same time, these services are having plus points as well and this kind of outage should not affect there business unless and until they are so frequent. You should continue with the office 365 account and have faith that Microsoft will not disappoint you so frequently.