This short article talks about the Google/Microsoft war, and suggests that Google may be winning. The theory is that Microsoft is way behind Google in being able to deliver Web-enabled applications. The author points to Google's still fledgling word processing and spreadsheet applications that run via the Web.
I am not so sure. Vista is going to be a very painful upgrade, and the high cost may drive a few more people to look at the Mac and Linux as alternatives, but Microsoft makes a lot of money in the corporate and business environment, and very few serious businesses are going to try to save a few bucks by using Google's free or low fee Web apps. Are you willing to store all your company secrets and financial information on a Google server that you do not control? It is not a likely scenario. Microsoft has the deep pockets to play a long game of catch up with Google, and another flawed assumption here is that Google is doing everything right. Google has already had several flops, and it still has been unable to significantly improve its search engine, despite the long lead it has had over competitors. This will remain an interesting horse race for a long time.