Umair of bubblegeneration (which Matt introduced me to) has a great post on Microsoft.

Also note that interconnectivity is now table stakes – not added value. I can already transfer my MP3s etc between almost any device I own. MS is, contrary to it’s own belief, not creating value for consumers by ‘allowing’ them interconnectivity.
I’ve read so much scaremongering about MS in the last few days, I’d like to formulate 3 principles of thinking about MS:
1) MS is strategically (much) less intelligent than you think.
2) MS is strategically (much) less capable than you think.
3) Revise expectations 1 and 2 downwards again.
And, of course, the zeroth law is:
0) MS will tactically stoop (much) lower than you think (because of 1,2, and 3).

There are parallels to other companies that I would note if I could, but I won’t.
Also, as always, we ought to note that everyone underestimates Redmond at their own risk. Yet these days, it does seem like Microsoft is challenged by itself, by it’s own legacy business and customers…
bubblegeneration – strategy, business models and technology