When Office products are downloaded from the Volume License Service Center they come down as .ISO files. .ISO is not a file format that Windows can open natively. An ISO file is an image of a CD/DVD. Typically you would be able to use a burning program like Nero, or ImgBurn, to then burn that ISO file directly to a disk.
How do I use .ISO files?
Once you have downloaded an .ISO file, there are several possible options you can use to install the software: