this is what i have been saying about google's relentless drive towards web services.
do you think the computer industry is about to see a paradigm shift that dethrones the wintel duopoly? if google can get the web services, on-demand paradigm going that means nobody will upgrade to the latest and greatest PCs just because microsoft comes out with a new os. that means the end of microsoft's fat cash pile and intel's cushy margins.
by the way, i am doing some research on innovation, and i claim that microsoft is extremely innovative on business models, but not at all so on technological innovation. so far as i can tell, just about the only big thing that they have fully created themselves is the xbox, and maybe .net. most of their big hits (dos, word, excel, powerpoint) they acquired from other companies they bought. do you have a different opinion?