Or did they doom themselves when they failed to come up with an online strategy in the 90s? Microsoft has certainly made hay in a lot of markets, so it is difficult to count them out of any market they enter. Still, at 5% of the text based serach ad market, they have a lot of ground to make up on Google.
Do you thing Microsoft can shed their PC roots and become an online powerhouse?
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Microsoft has a long long track record of creating very little, but being good at buying other people's creations and eventually integrating those into the MS Monolith. They'll do the same here, even if it means buying Google.
I see it very difficult for Microsoft to buy Google, if you just take a look at the value of Google stocks. Google stock are at least 20 times higher than Microsoft. Microsoft didn't buy Yahoo with a stock of $24. Will be very difficult for Microsoft to buy Google with a stock $579.
UMPC, they must, absolutely MUST deliver a new OS that runs as well as Linux, does as much and is as secure. Windows 7. The writing is on the wall, they concede, Windows 7 will be about performance. They vastly overestimated hardware capabiltiies and their ability to mandate everyone moving to it. Zune needs some real killer idea. Office and IIS is under constant pressure from Open Source equivalents. Live vs Google Docs, advertising, Xbox, OOXML, and the thousands of mini-fronts as people experiment/bring price pressure by trying alternatives.
Look, they are a big company, but they aren't that big. They need to focus on what they have now, the competition isn't standing still, and MS doesn't set the rules anymore. When I read that they are bringing out their 17th developer toolset for the 9th language in a year, it's almost manic over there. Focus on .net, silverlight, Office, Windows 7, IIS, Zune and XBox. They are about to bite off more than they can chew.
NOTE: The new data portability is destined to fail, it mandates MS only products, is under the control and license of MS, and the market has decided, we want open.
TripleII
Look, they are a big company, but they aren't that big. They need to focus on what they have now, the competition isn't standing still, and MS doesn't set the rules anymore. When I read that they are bringing out their 17th developer toolset for the 9th language in a year, it's almost manic over there. Focus on .net, silverlight, Office, Windows 7, IIS, Zune and XBox. They are about to bite off more than they can chew.
NOTE: The new data portability is destined to fail, it mandates MS only products, is under the control and license of MS, and the market has decided, we want open.
TripleII
Er...Wasn't netscape swallowed by AOL? Feel free to correct me if I'm wrong but isn't Firefox a fork of mozilla and until recently it was a competitor to the aging Netscape.
By using Windows Vista they have already started by having customers defect to other OS's. 
They just fixed up 7 a bit before they released it then they fixed vista. But they still both have features and problems that annoy many people.
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