mikedee - 5:18 pm on Dec 18, 2007 (gmt 0)

However the large chunk of Microsofts cash comes from businesses and government use. Also Microsoft has positioned themselves towards cloud computing with their Live-services, so it's not like they are totally lagging.

It just looks like they really do not understand what is going on and are releasing another 'me too' product (nothing shocking there).

What Microsoft should fear is loss of their total domination plus fighting the public impression that they are an old out of touch company. Their whole business depends on the monopoly of Windows and Office, without them they would not have the power to attack and take over other markets.

A significant percentage of people not using their operating syatem/browser means that they cannot dominate and milk that sector. Look at what has happened with internet browsers in the last 10 years.

- Netscape releases browser.
- MS Copies it, uses their OS domination to kill the competition.
- MS sits back and milks the web developers and impedes innovation.
- Mozilla sets up a business model that cannot be killed in the same way and gains significant market share (> 10%)
- Finally (after > 5 years of nothing) MS releases IE 7 to try to maintain the domination of Windows and Office.

They are scared to death of losing the Windows cash-cow, without it their company cannot abuse so many other companies and stifle innovation. If they lose > 10% of the operating system market then we will see big changes and innovation in the market.

Microsoft is on a long path down, thats probably why Google is not so interested in competing directly with them. Thankfully for us there are some companies that do care about making good products over good profits.

Good riddance Microsoft, on the way out, please please just give up on IE. A web with only Mozilla, WebKit and Opera would be a better place.