The New York Times has a very cool article analyzing Microsoft's bid for Yahoo. In short, this bid, the article argues, is "a tacit, and difficult, admission that the company did not get its online business right" and is thus really Microsoft taking on Google. It goes deeper than that, of course.
I wonder how much in a panic Microsoft really is. Vista is regarded in many circles as a bust, and Word 2007 inspires more loathing than any piece of software I can recall seeing. On top of that, Apple largely spanked Microsoft in the music player war, and the Zune ain't gonna get them caught up. Microsoft might very well be panicking, looking for some line of business to enter when their software dominance finally dries up.
And their software seems on the ropes, getting smacked around by open source. Firefox is undergoing significant market share growth. More and more students are turning in papers using OpenOffice. And the signs of Linux's entry into the public consciousness are growing. Hell, even I now have an Ubuntu machine.
This should get interesting. Stay tuned.
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