Microsoft's problem is that the marginal advantage of going with its dominant products (Windows and Office) is very low with cloud and mobile devices as opposed

Microsoft's problem is that the marginal advantage of going with its dominant products (Windows and Office) is very low with cloud and mobile devices as opposed to PCs. Perhaps, but I think this has as much to do with the fact that mobile just isn't a great platform for power user tools. Sure, we now have iPad spreadsheets, drawing apps, word processors, presentation tools etc, but they're very simplistic compared to what's available on the desktop. They're also generally just too cheap per unit to generate anything like the kind of revenue pro desktop apps can generate. But, as limited as these apps are, they do meet the needs of a lot of casual users. This is a problem every desktop software vendor is dealing with right now.