>>>They think that MS' Office 365 offering is a great substitute for in-house Exchange and SharePoint, which they are no longer offering.
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>Yep, MS has dropped Small Business Server, so it's the MS Cloud Way or the highway. Personally I think Exchange/Outlook had a lot to offer even compared to free alternatives. Whether small business is willing to lease rather than purchase is another question, especially when lease is so much more expensive. Not sure MS has correctly gauged the mood of a business market that largely would have been happy to stay on XP.
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>>>In the commercial desktop world they think that Windows will be around for a long time.
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>No doubt. After all, VFP is still around despite all. ;-)
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>MS's big issue is the one described by John Maynard Keynes: "I am sure that the power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas." Keynes also asserted that the ability to change your mind is greatly reduced after the age of 35 and that in the end it is new ideas rather than vested interest that are the source of good and evil in the world.

I generally agree with JMK, but I think that "I am sure that the power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas." underestimates the power of vested interests.
While it's true that over a long period, people ultimately do the "reasonable" thing look at how long powerful institutions like the divine right of kings and slave owning held sway.
For a more contemporary example, consider the enormous monopolistic power that the broadcast and cable industries have seized over broadcast frequencies which are, after all, a public asset