Do you think Windows Live SkyDrive is fine to use for school?

I have the LG Notebook so I don’t really have that much space to put Microsoft Office on it. Instead I found out about the Microsoft Office that is included in my Hotmail account. I have tried using it and sending it to dad for example if he was a teacher and needed to edit and look over my work
But what I don’t get is that does the other person I am sending the document to has to have hotmail?
If you know more about it please tell me.
Also here is the link about SkyDrive
Also I always need internet connection to work with it.