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Compare the ribbon in the Starter Edition (shown here) to the one in the unrestricted version of Excel and you’ll see that four tabs are missing, making it difficult to work with data connections and impossible to use PivotTables.
Compare the reasonably full Excel Starter interface with this truly stripped-down Excel Web App. The Insert tab has a mere two commands available, and many formatting and formula option are completely missing. (This screen is from a SharePoint site, but the SkyDrive app looks the same.)
As with Word, the feature set in Excel Starter is identical to the full version where it exists, as in these three tabs worth of commands for creating and editing charts.