Europe here. I disagree. Many SMEs are totally happy with Google Workspace and Canva, as GP mentioned. I know people using just that. And they don't understand why there are people suffering from the Microsoft-Stockholm syndrome.

The market may not yet be 365-sized but as GP mentioned: it's there.

And there are young people arriving at an age to open a business who have never used a Windows computer in their entire life. To them Microsoft is the company that make the virus-infested, slow, computers full of ads they see at their grandparents' house. That cohort ain't buying Windows / buying Office / using Azure.