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Many applications that can be used with ZIP files can also be used with ISO files, so you may already have such an application available. Your application might use the word decompress rather than extract or unzip, but the result is the same. You need additional software to extract an ISO file.
How to extract the contents from an .ISO file without burning the .ISO to disc. 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.