The company is evaluating the possibility of bringing its Office suite to the iPhone in the wake of the release earlier this month of the beta of Apple's software development kit for the cult-phenomenon that is the iPhone, according to an interview with Tom Gibbons, corporate VP of Microsoft's Specialized Devices and Applications Group, published this week in Fortune magazine.

"It's really important for us to understand what we can bring to the iPhone," Gibbons told the magazine. "To the extent that Mac Office customers have functionality that they need in that environment, we're actually in the process of trying to understand that now."

Microsoft's Mac software business is nothing to scoff at, estimated at around $200 million by Fortune, since Microsoft wouldn't break out the numbers, and the iPhone's popularity means Microsoft wants in.

"The key question is, what is the value that we need to bring? We're still getting comfortable with the SDK, right? It's just come out. So we had a guess as to what feasibility would be like, now we'll really get our head wrapped around that," Gibbons said.

Apple plans to release the final SDK in June, along with iPhone software 1.2 which will bring Exchange compatibility to the smart phone, something critics had found a glaring shortcoming.

What remains to be seen as Microsoft plots its iPhone move is how the software giant will distribute its wares. Through the channel? Or will it be forced to bend to its rival's will and distribute through Apple's App Store like everyone else?

For the channel, Microsoft finding a way around Apple's tight control of the iPhone might finally bring resellers an invitation to the iPhone party.