""We think the future is going to be software plus services," Darren Strange, senior product manager for Microsoft Office, said. "There are some things which thick client [Microsoft's favoured model, where PCs are linked to a central server but can operate independently] is better at than [web-based services] X offline use being a big one."

The need for off-line access to data is shrinking every day. Many people simply can't do their job without a network connection.

"You also can't create the richness of an application like Word through a thin client [where a user's PC is effectively a dumb terminal and the processing of data is done elsewhere]".

Why not? Maybe not today, but next year, five years from now? Items get checked off the "can't do that in a browser" list every day.

"Our smartest people are looking at mash-ups [where several online tools are fused together to create new ones] and web 2.0-type applications [which focus on online tools that allow users to collaborate and share information]".

They're just LOOKING INTO mash-ups and Web 2.0 applications now? Isn't the industry looking for a Web 3.0 model already?

I haven't seen anyone challenging a market where Microsoft practically own except in the browser market (i.e. Firefox).

Journalist/blogger should write stuff about Microsoft when there is something growing fast against it, not when some company purchase Zimbra.

Have Yahoo! ever done anything right integrating stuff they bought?

Google should tie-up with biggies like HP, IBM, Best buys etc. and give their apps on CD for free - this will increase the awareness and potential, also they should add a tool for automatic synchronization between docs on the hard disk and google doc website, this way user can have a backup copy and they can work off-line while they are on the go.