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Microsoft Office 2007 the New User Interface

As more and more features and functionality have been added to the Office applications over time, it's gotten harder for people to find the things they want. "Discoverability" is just one of the key issues addressed by the new User Interface.*

The Ribbon

The traditional menus and toolbars have been replaced by the Ribbon — a new layout that presents commands as a set of tabs. The tabs on the Ribbon display the commands that are most relevant for each of the task areas in the applications.

Office Excel 2007 has a set of tabs that make sense for spreadsheet work including tabs for working with formulas, managing data, and reviewing.

These tabs simplify accessing application features because they organize the commands in a way that corresponds directly to the tasks people perform in these applications.
Take a look at the "Ribbon" in Word 2007

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The new Microsoft Office 2007 User Interface Demo
More About the Hot New Features in Office 2007

*Text excerpted from Microsoft.com